The Hands-Down Best 10 Benefits of Investing in Real Estate
In the USA, investing in real estate is world-renowned as one of the most stable and profitable investment choices that can generate a high-profit return.
There are several advantages of investing in real estate aside from generating wealth.
One of the foremost reasons for investing in properties is to protect your money from inflation.
With Noble Sky International (NSI), you can join a network of like-minded investors to profit from co-investing in US properties.
When done correctly, US real estate is more profitable than investing in your backyard.
Choose the right investment platform to succeed.
You can also join a Free Live Workshop or Online Webinar that NSI conducts weekly to gain more knowledge and gather information about potential US real estate investments.
Our hands-on workshop explains the business structure for your real estate business stateside.
We teach you a hands-on approach to searching for properties that include extensive financial property data, such as estimates for rental costs, cash flow, and annual rates of return.
Here are the 10 top advantages of investing in real estate:
Generate Wealth & Build Equity
The first lesson in building Equity starts with owning a house or an investment property.
The power of equity is a natural appreciation or increase of a property’s value over time.
Equity is an asset and part of your net worth.
It makes this the most straightforward way to generate wealth.
Did you know that home equity in the US is at an all-record high?
The average mortgage holder now owns $185,000 of accessible home equity, which increased by 35% in 2021.
With Equity, an investor can generate cash flow and return on investment (ROI).
When you sell the property at the right time, you can profit handsomely if the price is right.
You can use Equity from one property to buy another investment property to generate monthly Cash Flow and double your gains.
Equity is a good leverage to increase your investment portfolio.
Reliable Long-term Investment
Unlike the highly volatile stock market, properties are not prone to frequent market swings or inflation.
The fluctuations in the real estate market do not reflect an immediate drop in price.
In all economic environments, stable real estate investments continually increase in value.
Real estate is a tangible physical asset that can be monetized by renting the property for a cash-on-cash return.
You could live there, and reselling the property provides an ROI.
For experienced investors looking to diversify their portfolios and mitigate risks, monthly income and tax benefits help offset the risks of investing in volatile markets.
Protection From Inflation
Property values rise along with inflation.
As the effects of inflation don’t negatively impact real estate investments, it is an excellent asset to own.
As a landlord, you not only maintain but can increase your Cash Flow by adjusting your rental when it’s time to renew your tenancy agreement.
Make sure you know the law and regulations, and remember to provide the proper notice with a direct professional letter.
Noble Sky International manages your rental properties, so adjusting tenants’ rent prices professionally and seamlessly is easy.
Rental Properties Provide Passive Income
Home prices tend to rise over time, so buying real estate has traditionally been considered a safe investment.
Your rental property can generate regular passive monthly income without you working on it.
You can live in a different state or country.
Making money without spending valuable time on your real estate investment provides tremendous freedom for investors.
While properties don’t automatically generate money, an investor must invest extensive time and effort to find and buy an investment property – flip or maintain the property, market the rental listing, and manage the tenants.
However, with the right property management company like NSI, every part of the process can be simple and stress-free.
NSI has a US Team on the ground to streamline the process of purchasing, buying, and managing your rental, allowing you to generate income and find freedom in your time.
Benefits the Community & Provides Housing
Responsible real estate investors can significantly impact the community through gentrification by improving old properties, increasing curb appeal, and providing new Housing.
In flipping, when investors buy and repair a dilapidated property, they remove an eyesore and provide a new home for residents.
Making an old building safe and habitable ensures community members have access to safe, clean, and suitable housing.
In addition, you are involved in the local community when you work with real estate agents, home inspectors, contractors, and employing workers for your properties.
You’ll start building relationships and a network with community members who may be neighbors, home sellers, or other potential tenants.
Working with local businesses helps stimulate your local economy and creates a network of professionals you can recommend and refer to others.
If you’d like to fix and flip houses, read our article Ways to Find Properties to Flip for Profit to get started today.
Wide Variety of Investment Options
The right type of real estate investment depends on your financial abilities, goals, and lifestyle.
The flexibility is an appealing advantage to investors as you can choose the types of properties to purchase and how you generate money.
Here are some investment property types you can choose to buy, fix, flip, or rent.
- Single-family home
- Multifamily properties
- Duplexes, triplexes, and fourplexes
- Commercial properties
- Vacation properties
- Apartment complexes or buildings
- Turnkey investment properties
- Distressed Properties
A business plan is essential, regardless of how you start investing in real estate.
You can use rental income to save for travel expenses, expand your portfolio, plan for early retirement or take care of expenses when you cannot work.
Effective Means of Saving for College Funds or Retirement
Get specific goals met.
Real estate investing is a stable way to increase wealth over time.
An ideal method of funding a college goal would be buying a rental property and putting the rental income into a savings account.
By the time the child turns 18, you could sell the property or use it for continual cash flow.
You can use the exact process to supplement retirement funds or save for retirement travel.
Since rental income is remarkably stable, retirees can use the cash flow while continuing to build equity.
Relatively Easy to Finance & Create Leverage
In your own country, you can invest with a mortgage.
Our strategy is to co-invest with other like-minded investors using Cash as leverage.
When you buy Cash, you are not affected if there’s a rise in mortgage rates.
Return on Investment (ROI) calculates an investment’s total return, including the debt burden.
On the other hand, cash-on-cash return only measures the return on the actual Cash invested – this provides a more accurate analysis of the investment’s performance.
The cap rate represents the yield of a property over a one-year time horizon based on the fact that the property is purchased with Cash and not using a mortgage.
Capitalization rate indicates the property’s intrinsic, natural, and un-levered rate of return.
Depending on your real estate investment, it’s better to focus on the cap rate and cash-on-cash returns than your ROI.
Tax Benefits of Real Estate Investing
Use Real Estate Tax Write-Offs.
One of the biggest financial perks of real estate income is the tax break or tax deductions you can take.
You get to deduct expenses directly tied to the operation, management, and maintenance of the property, such as
- Property taxes
- Property insurance
- Mortgage interest
- Property management fees
- Maintenance and Repair Costs
- Business Costs
Business Costs relate to everything that is required for you to run your LLC.
You can claim office space rental, legal and accounting fees, and travel expenses (to and fro from the USA).
Another big tax write-off is Depreciate Costs.
Depreciation is the gradual loss of a property’s value due to assumed wear and tear.
Pro tip: Noble Sky International has accountants who keep detailed, accurate records and receipts to prove the expenses you claim when audited by the Internal Revenue Service (IRS).
Freedom, Flexibility & Autonomy
As an investor, real estate investment offers a freedom you can’t find in other asset classes – the flexibility to choose your unique business strategy.
You get the time and financial freedom to enjoy personal and non-monetary reasons.
You can easily change your residence without cost if you own multiple rental properties.
Investing appeals to those with entrepreneurial spirits, as this flexibility can be highly fulfilling.
Some entrepreneurs would “house hack” and travel when guests live in their Airbnb.
Investing In Real Estate For Beginners
For newbies, the advantages of investing in real estate can be exciting.
You can be tempted to purchase a property you find online.
Successful investors know that solid real estate purchases take time.
You will need to research to find good investment properties for sale and evaluate these for specific criteria to find the best investment.
You can start by searching for properties with top real estate listing sites like Zillow, Realtor.com, Trulia, Foreclosure.com. and others.
Or you can join our investors and partners in building wealth and securing their future through intelligent investments with a hands-off approach – Noble Sky International can help you start your real estate investment journey during a recession.
You can schedule a 15- minute consultation call with us to learn more.
DISCLAIMER: Any information or advice available on the Noble Sky International website is only intended for educational and general guidance. Noble Sky Core LLC and Noble Sky Institute Pte. Ltd. shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising from accessing or using any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.