Investment options are plentiful, with choices ranging from mutual funds, stocks, exchange-traded funds, and real estate. Yet, the allure of steady cash flow, impressive tax advantages, long-term security, and the potential to generate wealth have made real estate investment a popular choice for many. Sunil Tulsiani, founder of the Private Investment Club (PIC), highlights 10 reasons why investing in real estate is a wise decision in 2023 and beyond.
Investment options are plentiful, with choices ranging from mutual funds, stocks,
exchange-traded funds, and real estate. Yet, the allure of steady cash flow, impressive tax
advantages, long-term security, and the potential to generate wealth have made real estate
investment a popular choice for many. In this article, Sunil Tulsiani, founder of the Private
Investment Club (PIC), highlights 10 reasons why investing in real estate is a wise decision
in 2023 and beyond.
● Steady Cash Flow
In real estate investment, cash flow is the amount left after all expenses such as mortgage
and operating costs are deducted. Well-chosen property investment can generate steady
positive cash flow. As an investor, you can improve your cash flow by upgrading your
properties, changing their usage (such as turning them into student housing or short-term
rentals), or providing fully furnished apartments.
● It’s a Safe Investment
Investments can often experience significant fluctuations and instability, leaving investors
feeling uncertain about the future of their returns. However, real estate is considered a
secure long-term investment option, as it provides more control for the investor to enhance
the property and increase their return on investment through means such as improving the
property or securing a more profitable tenant.
● Take Advantage of Tax Deductions
In addition to consistent income streams, real estate investment offers numerous tax
benefits that can result in significant savings. Although there are various costs associated
with real estate investment, such as mortgage payments, property taxes, insurance
premiums, depreciation deductions, and maintenance costs, these expenses can be utilized
as tax deductions with the assistance of a qualified accountant.
● Real Estate Increases in Value Over Time
Real estate has a proven track record of appreciating over time. Even during economic
downturns, real estate survives and returns to normalcy. The more rent increases, the higher
your income. And by making small renovations t