What is the Need of Investing in Property Rather than Stock Market
Tax discounts are some of the benefits of investing in property. You find that most of the people who invest in property are paying very low taxes considered to the stock market. You find that when one builds a house is that you are helping the government to solve the problem of squatters. And this is the major reason why their tax rates are different from other forms of investment. 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.
Apart from that property investment is also important since it puts you in the best loan 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. You find that when you invest in property you will be in a position to get that security since a building is something that is long lasting. A property can be sold by the bank to recover their money back if you fail to repay and thus why they can give you loan easily without having to worry about anything. This is different from stock market as they can decide to run away without leaving any trace or maybe they can die without leaving a stock that can repay the loan. Running away from the banks if you don’t repay loan will not be a solution as they will just come for your house and sell it.
People also prefer investing in property because of the good and fast return. If you invest in property you will be able to get the money you used in building within a very short period of time. With property investment you will be able to get a steady income at the end of every month without being influenced by inflation. This is different from stock market as you will not be sure of the money you will get the end of the month due to constant change in prices.
People also prefer investing in property since it is always appreciating in value. You don’t need to do much to boost the value of your property just a simple painting will be enough to boost its value. This will in turn be followed by an increase in the monthly charges to the tenants. With stock marketing the value of items will keep on fluctuating due to inflation.
In addition, low maintenance cost is also another benefit. You will get your money back by increasing the monthly rental charges of tenants.