Relocation? or rent? which one is a better decision?
- Real estate is improvable
Real estate is improvable because it is a tangible asset that is made of wood, brick, concrete, and glass. The fact is that you can improve the property value with some “elbow grease” and “sweat equity”. It is still the same principle if you hire someone or do it yourself by not minding if the repairs are structural or cosmetic. You can make your real estate worth more by improving it.
- Real estate coincides with the retirement
The principal reduction on mortgage became less and there is low cash flow when real estate is purchased. With time, when you paid off the mortgage, the cash flow tends to increase. Therefore, it is a perfect investment for retirement because cash flow increases with time.
- Real estate is tax-deductible
Tax codes permit several deductions for the normal expenses including property upkeep, maintenance, improvements, and even the interest paid on the mortgage. These normal expenses were incurred in owning real estate. The deductions for these normal expenses tend to offset income and help in reducing your overall taxes.
- Real estate is depreciable
Depreciation is regarded as a non-cash expense that is permitted by the tax code to depreciates the value of your property over time. Therefore, depreciation deduction allows you to generate a higher positive cash flow when trying to report a lower income for tax purposes. This tends to creates a higher return than what you are to initially realize. We recommend that rent in Seoul is a better choice for you.
Tips to Start a Real Estate Investing for Beginners
Steps to take as beginners in order to start a real estate investment include:
1. Don’t Rush
All you have to do as a beginner is to take your time before jumping into a purchase. As a new real estate investor, you need to first understand the conditions of the market such as how much they are renting properties, how they hold their value for resale, and neighborhood factors. You may decide to see about 100 properties before you buy.
2. Know Your Market
You are to do your own findings without relying on a real estate agent in order for you to know the values of the properties in that area you are about to purchase properties.
3. Buy REITs
As a new real estate investor, you are to be a party with public-traded REIT which allows you to purchase through a broker. You may likely see the best stocks to invest in by trying to search popular finance sites or reading the newsletters of the stock market.
4. Invest in Rental Properties
As a new real estate investor, you can try and buy a property and live there or even rent out all the rooms in the house to people because rental properties are known to be a good source of passive income.
5. Start Small
It is advisable for you to start with just one property or a duplex that has only a few units.
Advantages of Real Estate
- Real Estate Can Be Easier to Understand
At first, it may be difficult for you as a new real estate investor to understand everything you need to know in order to make a profit. Investing in real estate tends to be easier to understand because most people already have the idea of real estate to be the purchase of physical properties.