1. High Return Potential
Real estate investments typically provide a higher rate of return than many other conventional investments such as stocks and bonds. This means investors have potential to benefit from quick and long term financial gain. Real estate not only creates cash flow that you enjoy today, it also appreciates on average 5-10%/ year. The beautiful thing about that is the fact that your liability or loans are being paid down during that time also increasing your return.
2. Long-Term Appreciation and Equity Building
Property values can appreciate over time, making for consistent long-term returns and building equity. With this you can easily leverage your investment to buy more investments only compounding your return and equity growth.
3.Tax Deductions
Investors are allowed to take tax deductions against their rental income, such as property management costs, repair costs, mortgage interest and other costs associated with rental property. This can reduce taxable income and result in saving money at tax time. There is also a deduction for depreciation that dramatically affects your taxes owed and helps keep more of your money in your pocket than other types of investments. If you really want to save on taxes, you can do cost segregation on real estate and save even more tax money.