Thinking about investing in real estate? Then you’ve come to the right place. Investing in real estate is one of the soundest decisions a person can make for a wide variety of reasons. Kyle Krch provides his expertise on all things real estate investing, including the top four reasons why anyone should choose to invest in this lucrative niche.
Investing in Real Estate Adds Diversity to Your Portfolio
One of the top reasons to invest in real estate is because it will add diversity to your investment portfolio. Any financial advisor will tell you that diversity is key. Having a variety of investments reduces risk, as it will help guarantee that at least one part of your portfolio is performing well at all times. While most people are already invested in a mixture of stocks and mutual funds, as well as RRSPs, adding a real estate investment into the mix will help diversify your portfolio even further.
Investing in Real Estate Will Give You Important Tax Advantages
According to Kyle Krch, the founder of Pareto Peak & Pasiv8, the second reason that real estate is a sound investment is because of the tax advantages. That’s right, there are plenty of tax benefits to be derived from real estate investments. Tax codes across the United States offer various deductions for the expenses that come along with owning real estate. Such deductions can relate to the upkeep or maintenance of the property, interest paid on mortgage, and even renovations or improvements made to the property. These deductions will help increase the income you earn from your real estate investment, as they will reduce your overall taxes.
Investing in Real Estate Will Earn You Cash
What is the main reason people might choose to invest in real estate? To earn money. Kyle Krch claims that investing in real estate is one of the most surefire ways to increase your cash flow. One of the most appealing aspects of real estate is undoubtedly the potential to generate income. If you’re willing to invest for the long haul, long enough to pay off your mortgage, then the potential for cash becomes even greater. Krch shares that many of his clients are able to pay the costs of mortgage payments, taxes, and fees and still have an money left over on a monthly basis due to the success of their real estate investments.
Real Estate Investments Will Appreciate in Value
Kyle Krch claims that in almost all cases, your real estate investment will appreciate in value. Studies have shown that even during a downturn in the economy, the value of real estate will still grow, even if at a slower pace than the previous national average. This is simply not the case with stocks and bonds, which is what makes real estate such a promising investment. In addition, Kyle Krch of Pareto Peak notes that unlike other types of investments, real estate is improvable. If, for whatever reason, the value of your property isn’t appreciating as much as you would like, you have the option of undergoing renovations or other improvements that will make it more valuable and attractive to buyers.