Real estate is a great investment option which can generate a sustainable passive income. You can even use it as the foundation to build your wealth. Here’s more on this!
True, real estate is full of advantages. You can invest in a house or an apartment at a property built by real estate developers such as John Keells Properties. However, there are some things you should know to identify if you’re ready for it in the long run.
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Real estate values increase with time
If you’re browsing through real estate Sri Lanka has to offer, focus more on Colombo and its suburbs where properties tend to appreciate a lot with time. A perch may cost around several million and the prices are ever-increasing – so, if you can invest in these regions with high demand, you’ll surely dig up a gold mine!
Real estate possesses tangible asset value
Unlike other investments of which the value can dip to zero (as with the case of stocks), real estate will always carry their value. It will only lose value in case of destruction so be sure to get the best insurance for your properties.
Real state investment can diversify your portfolio
If you know a thing or two about financial planning, you may realise the importance of diversification. Once you diversify your wealth, you spread out the risk, and real estate is a surefire way of mitigating the risk in your portfolio.
Real estate comes with various tax benefits
If you’ve invested in real estate, you can get tax breaks and deductions that will save money when it comes to paying taxes. You can deduct the costs of owning, maintaining, repairing, and general maintenance of your property.