10 Reasons That Prove Real Estate Is The Best Early Retirement Tool
Do you want to retire early? Here, retiring early doesn’t mean that you will do nothing. It means you will be free from the nine-to-six schedule and work on the schedules and projects you love. Early retirement from the rat race gives you more family time and the time to fulfill your desires. If you want to take the advantages of early retirement then you need to choose a tool that will help you to finance your post-retirement life. There are several tools that are just perfect for that. But today, we are going to discuss a tool that is the most effective and advantageous. The tool is none other than the Real Estate. Yes, Real Estate is the only tool that is newbie friendly and if done right, can do wonders. A number of reasons are there that shows the effectiveness of Real Estate as an early retirement tool. We are explaining ten of the main reasons in this article for you. So let’s get started.
1. True Passive Income Stream
Passive Income is the kind of earning which doesn’t take continuous effort to make money. You need to make the effort initially for a short time and once you get started well, your short-term effort will keep you earning for long-term. Think of investing in real estate. If you want to invest in a real estate property what do you need to do? As per your planning, you need to apply for loans or invest from your savings. Then you need to perform a thorough market research to choose the right property to invest. Lastly, you need to go through the legal procedures of investing and that’s it. These are all the efforts you would make to earn a steady monthly passive income for life by rent the property. And if you already own at least one rentable flat in Noida Extension, Delhi, Mumbai, Bangalore, Kolkata, or any other metro cities then you can proceed with the passive income process right away.
2. Dependable Monthly Earning
Once you buy a property and rent it on monthly basis, you will get a handsome amount as monthly earning which is dependable and promising. You can stick to one property or opt for more properties to increase your monthly income and savings. The rent of a property varies from place to place. You can choose a property niche such as single-family niche or multi-family niche to achieve your income goal.
3. Low Risk
As compared to the other passive income sources like stock, trading, shares etcetera, investing in real estate is almost risk-free. When you invest in a property, you actually own it. Also, the cost of a land usually increases over time. You don’t need to predict your earnings if you invest in real estate and further rent it out.
4. Tax Positive
The most interesting point of going with real estate is its tax saving power. Where the earnings from other income sources are taxable, there are several ways to save tax legally if you are into real estate investment. Specifically, real estate rental income is non-taxable in most of the cases if you have the right documents at the place. It will save you tax at a certain percentage following the sections of the real estate taxation law. Another advantage is, the value of your property will increase over time but you will pay tax against the buying price only. If you own a residential property in Noida Extension, Delhi, Gurgaon, Mumbai or any other cities, you can consult with the renowned tax consultants of the respective places.
Unlike other investment options, investing in real estate seeks personal involvement. The more you get personally involved, the more you will learn and earn. If you can influence people then you can maximize your profits by acquiring great property deals and renting it at the best price. So it seems that minimizing your effort and maximizing your profit needs you to take the full control over the process.
If you choose real estate as your early retirement tool then it will be a hassle-free process for you. You don’t need to run on a treadmill all day long to add some extra pennies to your earning. If you rent out your property, you don’t need to bear the maintenance cost even as the tenants will take care of your property. The legal procedure for buying a property and proceed with the monthly rental income is also easy and well-structured.
7. Saves Time
If you have a targeted date to get financial independence then real estate investment should be your first choice as you don’t need to wait for a long time to create wealth. If you do the initial work properly then you can get assured monthly income as long as you have tenants to pay you. This ongoing income stream can be only created through real estate investing.
8. High Return
Real estate investment is the only source of passive income that gives you a high return on investment in a short period of time so that you can grow your venture by reinvesting on it. The return you get in a short time span from real estate is nothing less than the returns you get from the other investment sources.
This advantage of investing in real estate is really lucrative. This fact comes only with real estate that its value is ever appreciating. The more time passes, the more costly it becomes. And the best part is, you don’t need to do anything to increase the value, it’s an automatic process depends on the development of the surroundings.
10. Easy To Operate
If you have made up your mind to earn passively through real estate then let us tell you that the before and after process are easy to operate if you have enough knowledge about the industry. It takes less time to understand the art of investing in real estate and get profit from it. You can also consult with the real estate professional to help you out in your venture.