What is the Need of Investing in Property Rather than Stock Market
Tax discounts are some of the benefits of investing in property. This is because the taxes that are paid on the property investment are a bit lower compared to stock marketing. You find that when one builds a house is that you are helping the government to solve the problem of squatters. Because of that the government have decided to give them a special tax rate. Not only that, but they are also rewarded by the government for having built house for people to stay in addition to being exempted from paying taxes. This helps them in realizing a lot of revenue since they are paying less or no tax.
Another benefit of property investment is that it puts you in the best tax position. On most cases for the bank or any other money lending institution to give you loan they must get enough security that can equate the value of amount of money that you need. This is so possible since a building is something that can last even for more than one hundred years before it becomes outdated. This will make the bank to give a loan very easily since they know that if you fail to repay the loan they will just sell your property to get their money back. Compared to stock exchange where one can disappear without leaving any trace or in any case of his death the bank will have hard time recovering their money back. The advantage with property investment is that even if you die or run away the property will remain behind for the bank to sell and get their cash.
Good and faster return is also one of the factors that attract people to invest in property. If you invest in property you will be able to get the money you used in building within a very short period of time. This is because with property you will be getting a steady income at the end of every month without being affected by inflation. Most of the stock market investors do face a lot of challenges due to inflation in the market making the prices to keep on changing.
Apart from that, property investment always appreciates in value. The value of your property can easily be boosted by making minor adjustments like repainting the building with high quality paint. By doing that you will be in a position to boost the price of your house. On the other hand, stock market will always go down due to inflation.
ow maintenance cost is also another factor. You will get your money back by increasing the monthly rental charges of tenants.