Experts are looking optimistic about the housing market this year and predict it could be performing at its best in 5 years. What is contributing to this statement? The fact that many potential investors are seeing its benefits. With SA’s young population also growing, it’s a possibility that there will be a major growth market over the next 10 years.
Property is still seen as one of the best investments you can make no matter how the markets are looking. With a good strategy in hand, you can always make a profit. If not immediately, then in the long-term. We provide reasons why you’ll always benefit from property investment.
There’s always a cash flow from your rental property, even after all the bills have been paid at the end of the month. Property can provide you with an ongoing monthly income that is mostly passive, meaning you can put the money away or use it to improve your lifestyle. Cash flow from real estate is far more stable and predictable than from most other businesses. This makes real estate a great investment for entrepreneurs enduring the financial ups and downs of starting their own business.
You will pay far less tax on a rental property than any other business. This means that more of the money you earn goes into your own pocket and stays there.
Save on loan payments
You may have to take out a mortgage to pay for the property but the good thing is that your tenants’ payments will cover this. You can increase your net worth each month even while making payments. Due to this, your loan payments become a savings account that is automatically paid for each month. The money you save could be used for fixing up the property or buying a new property to add to your growing portfolio.
Despite what the markets are doing, over the course of time, a property will always appreciate. There may be fluctuations but in the long run, you will be making money. This means that you can rent out the property and reap the benefits while waiting for the perfect time to sell.
Property can be a long game but it is well worth it for the return on the investment. It’s a much more reliable source of income for an entrepreneur than starting your own business or working for a big company.
Learn more about why property is a great investment at our free seminars. Think and Grow Rich: A Lifetime of Riches in Property uses the basics of Napoleon Hill’s life-changing principles and applies it to the world of property.