Invest in Real Estate
Investment goals help to determine a successful investment property strategy. Many experts on the subject agree that there are many good reasons for buying an investment property, for example:
- Higher equity growth and capital appreciation, because the real estate market is at lower risk than many other markets which are intended to produce growth.
- Wealth storage, especially for overseas investors who want a stable, productive, and appreciating asset in a lower risk market.
- Obtaining maximum tax benefits which will automatically lead to maximizing both yield and underlying price appreciation.
- Ease of leveraging the investment to deliver the most profit.
- A hedge against inflation because rental income produces not only an acceptable yield but can be raised at frequent, predetermined, or agreed times (e.g., annually or when a new lease is signed.)
- Deliver lifestyle benefits and emotional wellbeing because the asset is so visible, usable, and income-generating. And in the future, should it be part of the underlying strategy, maybe lived in and enjoyed by the owner or their family.
- Provide a well-proven market model for a family member can learn how to manage their business enterprise before, say, getting involved in and then taking over the reins of the family’s primary business.
There are many sound reasons to choose either residential or commercial real estate. If residential, the choices are broad. Where should the investment property, or properties, be located? What type of investment properties should be chosen? Options, driven by strategy and goals, include luxury condos, lower-priced condos, townhomes, single-family homes, and multi-family homes such as a duplex, triplex, or quadplex.