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| Image Source: homeguides.sfgate.com |
Once you have your own home, putting aside money to pay for a second house that you can rent out for additional income is a good idea. After all, who wouldn’t want to have a passive income, right?
Here are four reasons why you should invest in real estate the second time around:
• Real estate appreciates in value. Normally, real estate value increases with inflation. If a real estate property increases in value, it means that it can be sold for more money than what you paid for it 10 years ago, making it a really good investment.
• Inflation increases rent revenue. When inflation increases, rents tend to increase as well. This means that your cash flow will increase without additional expense in maintaining and keeping the property. Also, when inflation is up, many people will be renting. This increases demand, which means higher rental prices, and more profit for you.
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| Image Source: news.com.au |
• Real estate leveraging has a lower risk. Compared to leveraging in the stock market, leveraging in real estate is safer because the risk that real estate value will plummet is very low.
• Improving a real estate property increases equity. Improving the facilities and amenities of a real estate can greatly increase its value. For example, adding a swimming pool to a house can increase the value of the said house by eight percent.
However, investing in real estate and real estate funds still carries a risk. This is why talking to real estate investment experts, like Esplanade Capital and Prudential Real Estate Investors, is a good idea.
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| Image Source: inside-real-estate.com |
Esplanade Capital has the goal of providing an intelligent, responsible, and dynamic approach to real estate acquisition. Visit its website for more information.
