Historically, real estate has increased in value greater than inflation and many other forms of investments. Depending on the geographic location and type of property investment, the gains are frequently double-digit and sometimes triple-digit. Through the application of financial leverage, the net returns in cash flow and property appreciation can be considerable.

1. Attractive Return on Investment (ROI)

The potential for an attractive return on your investment is very high in real estate, especially taking into account an increase in property capital gain and positive revenue cash flow income.

2. Tax Advantages

There are numerous types of tax advantages to investing in real estate, whether you have a principal residence or investment income property. It would be difficult to find an investment that has as many financial benefits as real estate.

3. Low Starting Capital Using Principle of Leverage

This concept simply means putting in a small amount of money and borrowing the rest using other people’s money. Many people have become millionaires by applying this principle.

4. Low Risk

Any investment has potential risk, and you can indeed lose money in real estate. However, there are reasons why someone might lose money in real estate. These reasons are generally predicable, and can be avoided or minimized through advance knowledge and applying proven principles.

Real estate has traditionally been a secure, stable investment compared to other investments, especially if one buys prudently and with advance knowledge. Today’s current low interest in fixed-term investments is causing investors to consider other options. An investor might be concerned about the equity stock market risk, recent negative experiences with certain categories stocks, or low returns. A buoyant economy with the attendant sense of confidence in one’s employment, and natural comfort and affinity for real estate, is another factor contributing to the real estate investment environment.