Richness is a desire possessed by all. An average human being spends more than half his life working to become wealthier. However, ‘being wealthy’ is a state of mind and is highly relative. The notion of ‘wealth’ is subjective in nature and there is absolutely no shortcut for becoming richness. But by investing in real estate (or if you are an investor already), you can definitely better your financial situation.
In this blog, we looked into the ways to become rich by investing in real estate. Let’s read on-
- Increasing Cash Flow
Cash Flow is the extra profit left after all the costs is paid off. For example, you rented out your property with $6000/ month as rent. After spending an amount of $4000 on electricity, water, maintenance. security fee etc., you are left with $1500. This is the cash flow from your property. The more the number of properties on rent, the higher the cash flow will be.
- Value Appreciation
Value appreciation of properties is as true as the existence of the sun and moon. Though, it might not happen on a bi-yearly or yearly basis, value appreciation of properties in real estate happen historically, over a period of time.
- Tax Benefits
By owning property, the owner can get multiple tax benefits. There are tax exemptions given to investors which is a great wealth generator. These benefits are several and are all distinct in nature. For example- certain governments do not recognize cash flow as taxable income.
- Hold and Re-sale
Another great way to make money in real estate is through re-selling. Many investors buy substandard quality properties, only to transform them into high-value ones after making certain improvements.
Some others invest in properties which do not have high returns. They hold the property and resale the same when the market value stabilizes and have better returns.
- Commercial over residential
Commercial properties bring more income or cash flow than residential ones. If you have the financial capability to invest in more than one property, choose something commercial. This will bring you more returns than any residential property.
In a nutshell, investing in real estate is a great way to make a bigger income. For more information related to real estate blogs, click here.
RealtyMonk is an online classified multi-listing portal which manages and maintains the listings of Residential, Commercial and Agricultural properties, with the intent to simplify the Property “Rent/Buy/Sell” process for buyers, owners and tenants. It serves as an intermediary between the buyers and sellers.