Growing economy and income
of individuals around the world increased the demand and prices of luxury
residential and commercial properties. This created earning opportunities for
people by investment in real estate.
Population growth created scarcity of important resources like land due to which real estate industry experience boom in prices. Investment in real estate is considered to be the safest. It is observed that passing of time can provide good return on investment which attracts the investors all over the world. As buyers around the globe search for safe investments with necessary returns, they invest in good property and prices in several property markets which continue to rise at a great speed. People invest in the areas where they experience strong market to minimize the risk in investments.
The uneven distribution of income amongst people created high earners with large capital portfolios to invest. Ultra wealthy people have instant cash to invest by which they dominate real estate market and the people in urgent requirement. People begin to considered lifestyle while selecting a property. Good education opportunities and desirable lifestyle in global cities, economic, political security and population of wealthy peers are acting as a magnet to attract potential investors. The luxury home builders considering the requirements and modern amenities develop homes and commercial property which they sale at premium prices to the buyers. Jumbo mortgage loan allowed people to buy luxury properties and shift into upgraded house which increased the prices of real estate.
There are certain benefits including income by investing in real estate. Investment in property helps to diversify your portfolio and minimize the risk. Renting the mortgage property indirectly transfers the loan amount to the tenant that pays rent and at the end of the mortgage loan term, investor become the owner. Government allows tax deductions to rental property owner in the form of maintenance repairs, insurance, interest on mortgage, professional and legal fees. Above all these benefits investors are also allowed to charge depreciation on property even though value of property is appreciating.