Whether real estate investment is a good move or not is something that confuses some real estate investors. Through this blog post, we discuss benefits the real estate investors can enjoy through property investments in Massachusetts.
Real estate is a hard asset
Being a tangible asset, real asset is referred to as real or hard asset. The hard assets can be utilized to produce other services or goods. This offers an assurance that, even during economic downtimes, they will be of some value.
Cash flow
This is the reason why a lot of investors prefer investing in this type of asset. A real estate investment lets an individual enjoy ongoing monthly income. As the income is mostly passive, you are able to invest your time in core business activities or leisurely purposes.
Tax benefits
When compared to other sources of income, you enjoy more tax benefits with real estate investment. The government offers benefits like low tax-rates for long-term profits and depreciation. You can also defer taxes on capital gains when you plan to sell your property. This can be done through 1031 exchange, in which you have to purchase like-kind property of same or greater value.
Diversification of portfolio
By diversifying your portfolio, you can reduce risks compared to portfolios with only bonds and stocks. You can receive consistent returns by making an investment in assets having low or negative correlation.
If you find investment in real estate somewhat cumbersome, you can choose an easier method. We are talking about DST investments. This is not only a hassle-free process but also allows real estate investments with less money.