Reasons why real estate is a great investment?

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john leonard Naples florida

Real estate is an excellent investment for many reasons. You can enjoy an excellent rate of returns, tremendous tax advantages and leverage real estate to build your wealth, says John Leonard Naples, Florida. Here are the top five reasons why real estate is a great investment.

Historically in real estate, your risk of loss is minimized by the time you hold on to your property. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams while enjoying capital appreciation.

Real estate has a high tangible asset value.

There will always be value in your land and your home. Other investments can leave you with little to no tangible asset value, such as a stock that can dip to zero or a new car that decreases in value over time. Homeowners insurance will protect your investment in real estate, so be sure to get the best policy available, so your asset is protected in the worst-case scenario.

Real estate values will always increase over time.

History proves that thelonger you hold onto your real estate, the more money you will make. The housing market has always recovered from past bubbles that caused home appreciation to slip, and for those who held on to their investments during those uncertain times, prices have returned to normal, and appreciation is back on track. Real estate investors like John Leonard Naples, Florida, in the top-performing markets, are enjoying a windfall.

An investment in real estate can also diversify your portfolio.

If you’ve ever spoken to a financial planner about investing, you are very aware of the importance of diversification. When you diversify your portfolio, you spread out the risk. Real estate will always serve as a safe tangible asset to mitigate the risk in your portfolio. Many have amassed wealth by solely investing in real estate.

Last but not least, real estate investing comes with numerous tax benefits.

You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value) and other benefits. The end of the year is a hectic time for real estate because people want to take advantage of the numerous tax benefits before the end of the year!