Gain financial freedom (financial freedom) is the desire of most people. One way to achieve it is to make an investment. However, investing would not be indiscriminate. Learning to deal with inflation and balancing the portfolio is very crucial and both can be achieved by combining a variety of assets. One of the investment instruments is now the trend is the property investment. You could take a look for the next great condominium investment, Grandeur Park Tanah Merah. Why investment in this area could be very interesting? Here are four advantages to investing in the real estate sector:
-Tax-free cash flow. One of the main benefits of real estate investing is depreciation and mortgage interest deduction (if you take advantage of owned capital) is also tax-free cash flow. Investors can wait for-profit capital gain from the sale of property in the future, without having to enter tax expenditures in their cash flow.
-Increased tax-cutting strategy. Based on your tax status, rental properties will not only provide tax-free cash flow but also can be used as a tax deduction against income source. Before investing you are advised to consult a professional in the field of taxation.
-Diversified portfolio. Another advantage of investing in the real estate sector is an opportunity to minimize your risk. Real estate has a low or negative correlation to another major asset. This means having real estate in your portfolio can reduce volatility and provide higher incomes.
-Avoid inflation. Developing countries are seeking to control inflation. Prices of food and higher settlements continue to drive inflation. Real estate investments have historically demonstrated the highest correlation to inflation compared with other major assets, such as stocks, bonds and enterprise bonds. Because the government keeps printing money to stimulate growth, have real estate assets as a protection against inflation is a smart move. In general, when inflation increases, the price of real estate, primarily multi-tenant assets with the ratio of labor costs and high replacement will also rise simultaneously.