Do you want to invest your money profitably?
5 reasons why you should definitely invest in real estate. There are two options for remuneration: an investment in monetary assets such as a call money account and the like, or an investment in material assets.
More and more people are choosing to invest in real assets, i.e. real estate, and with good reason.
A property House For Sale in Dubai retains its value, even if the money value by inflation and rent can generate regular income. Also, tax benefits play a real estate investment role. In this article today, I want to give you 10 good reasons why you should invest your money intangible assets such as real estate.
5 reasons to invest in real estate
Property owners often associate with wealth.
It is true that rich people very often own numerous properties or use House For Sale in Dubai complexes as capital investments. Numerous studies from the past have shown this: 9 out of 10 wealthy people made their fortune by investing in real estate.
1. No risk of inflation
Real estate does not lose value, on the contrary. When investing in real estate, investors can be sure that their money will preserve.
It happe again and again in the past that money devalues by inflation. The term inflation comes from economics and describes an increase in consumer prices. The rise in prices can cause by a change in the exchange ratio between the number of goods and the amount of money if the number of money increases without the production of goods increasing at the same time.
2. Direct interest and rental income
When investing in real estate House For Sale in Dubai, the investor does not get his money from the bank, but rents out the apartment and regularly receives his money from the tenant. That makes him independent of the bank’s decision.
The monthly rent of your property is your regular passive income. However, one shouldn’t buy just any house or apartment . Because only in select regions with certain conditions can higher rents be achieve over the years.
You can also get help from a real estate advisor. Because expert knowledge is necessary to be able to make a good choice when buying the property.
If the investor puts his money in a normal savings account, he can hardly get any compensation for the depreciation of inflation. With a higher interest rate, the risk increases at the same time.
Much fortune after the war came from owning real estate. For example, anyone who bought a house or a condominium in a large city like Augsburg or Munich in the 1960s multiply their wealth to this day.
3. Real estate increases in value
In Dubai, real estate companies in Dubai ownership is one of the main pillars of tax-free asset accumulation.
Not only the classic home but also rent properties such as residential properties, apartment buildings, and condominiums are an excellent capital investment.
Only real estate offers a high level of security, protection against inflation, tax advantages, returns, and a source of income in old age.
Those who invest wisely here not only get a good return from the rental income but can also look forward to an increase in value.
4. Tax benefits
The state directs investments in its favor through fixed tax concessions that are precisely defined in the Income Tax Act.
This creates extremely interesting opportunities for you as a real estate investor to allow the state to participate in your wealth accumulation.
Saving taxes with real estate becomes really interesting when it comes to investment real estate. In this area, there are numerous possibilities with which you, as an investor, can deduct real estate for tax purposes.
This is possible both when buying a plot of land, when building on your own or with a property developer, and when buying a new building or a used property.
In the case of a rent property
numerous expenses come into consideration as deductible costs. First and foremost, of course, the purchase price and construction costs. But also compensation payments for parts of the facility, necessary repairs in an old building. And the preparation of the garden. This also includes ancillary costs for the purchase and even food for the craftsmen at the topping-out ceremony.
The advertising expenses are particularly interesting. In certain cases, the tax office also accepts debt interest under this heading for the financing of the acquisition.
If you want to deduct the purchase of a real estate for tax purposes in this way. You should make sure that real estate financiers and tax advisors coordinate with each other.
5. You pay for your own apartment
You probably know the saying that everyone pays for an entire apartment in the course of their life. But not everyone for their own.
With a real estate companies in Dubai investment, you have the good feeling that the money is flowing into your own four walls and that you are creating lasting value for yourself with the monthly installment.
With low-interest rates and moderate real estate prices, the purchase serves to hedge and build up assets.
A property can also be a sensible capital investment for owner-occupiers: One that even brings considerable additional benefit compare to other forms of investment. Because unlike gold, federal treasury bills or shares. Which are purely a store of value or speculative objects. Apartments offer the benefit that you can live in your capital investment and save yourself the rent.