Jovan Malivuk

28/10/2022

27/11/2019

Reason #10 – BENEFITS | Why invest in Real Estate?

There are many benefits that you can gain through real estate investing.

First of all, we all know that owning a property generates wealth. Everyone should own at least one property or a piece of the property.

One of the many benefits of investing in real estate is being able to generate wealth through appreciation, building equity, and hedging against inflation.

It can also provide cash flow with passive income from rental properties. These are the reasons why real estate should be a key component of your investment portfolio.

Then, for an example, if you own a real estate in other country, you may have the option to change your primary residence from one to the other, if you decide to do that later in your life.

You can also test the Entrepreneurship through owning just one or multiple properties. There are many ways to invest in real estate and become an entrepreneur. You can buy a home, fix it up and put it back on the market for a profit. You can also buy a property to hold and let the appreciation create wealth. Perhaps you become a landlord and start purchasing rental homes or multi-family homes, or even land development is for you. Whatever decide - you are the boss!

My favorite advantage of investment in real estate is that it can be inherited. When you invest in a freehold property development, you possess an ownership on the real estate that is unlimited by time. It means that your property will be inherited by your child, your grandchild and so on.

Do you feel proud knowing that something good will stay forever behind you?

Investment in real estate in not just the way of making the money. It is primarily the way of saving it.

Real Estate gives you the opportunity to put your signature forever and make your legacy!

For more info please visit our Website.

https://invictusestate.com

25/11/2019

Reason #9 – RETIREMENT | Why invest in Real Estate?

When it’s done right, a real estate investing is a stable way to increase wealth over a period of time. Among the many benefits of real estate investing is that it can provide a cash flow for retirement. This means it can help supplement your retirement years with income from your rental properties.

Here is one an example.

Let’s say we invest in a real estate and we finance the property by mortgage. In this case, in the begging the cash flow is lower, because after we receive the rental amount from the tenant, we need to pay back monthly installment to the bank, to return the mortgage. But how time goes, this principal reduction on the mortgage is less and less, so over the time, the mortgage is paid down or paid off, and the cash flow increases. Actually, real estate investing is like a saving program, yielding a higher amount to have in your hand as time goes by, which is a perfect investment for retirement, as it increases in cash flow at the end of the day.

For more info please visit our Website.

https://invictusestate.com

21/11/2019

Reason #8 – COLLEGE EDUCATION | Why invest in Real Estate?

Real estate investing can also be an alternative way of saving for college education.

It is actually recommended to all young families to invest in the purchase of one property for each child who they believe will attend the college or university.

Now, let’s say one family decide to invest in a real estate and finance the property by 15-year mortgage program. It means that the mortgage on the property will be paid off before the child’s 18th birthday. So, it allows the families to actively save through the renters’ payments.

This family will use the rental income to return the mortgage and when the property is paid off, they can decide either to sell this property or continue renting it and use it as a source of cash flow.

For more info please visit our Website.

https://invictusestate.com

18/11/2019

Reason #7 – STRONG CONTROL | Why invest in Real Estate?

One of the most unique and attractive advantages of real estate is that it is improvable. Because real estate is a tangible asset made of wood, brick, concrete, and glass you can improve the value of any property with some additional work or “sweat equity”.

So, it doesn’t matter if the repair is structural or cosmetic, are you doing it by yourself or by hiring someone, the principle is absolutely the same - you can make your real estate worth more by improving it.

On the other hand, if you compare a real estate investment with other kind of investments such as investment in stocks, you have much more control, because it is always in your hand. Yes of course, if you want a better deal, you need to hustle to find it. If the values drop, you can choose to wait until the value goes up again or improve the property to drive the value back up. In other words, you are the one who controls the situation, but not the board room on the Wall Street or nervous CEO in some giant company.

For more info please visit our Website.

https://invictusestate.com

17/11/2019

Reason #6 – NO RISK | Why invest in Real Estate?

When you invest in a real estate, you are always on the safe side, because the real estate can never be worth nothing! So, aside from the fact that most real estate usually appreciate in value, your real estate investment can never go down to zero, even during a difficult time. It means that you can always sell your property when you own one.

Unlike the stocks, real estate never becomes worth nothing, even if the value drops.

On the other hand, have you ever heard that the real estate is “a hedge against inflation"?

Let me clarify what does mean actually. Let’s assume that the average price of a liter of milk is 1 dollar today. Now, can you imagine that you are going to pay for the same item 5 dollars in the future? I know, it sounds too much, but it is the future because of the inflation. Inflation is the process by which the prices increase because the value of money decreasing over the time.

But, while most people fear inflation, this is not the case with real estate investors. Investing in a property will protect you against inflation, because when the price level goes up, the rental income and property value goes up too! This means that the real estate investor is protected against both the immediate and the long-term effects of inflation.

Now, let me explain this through our example with a liter of milk. When the price of one liter of milk hits let’s say 5 dollars in the future, guess what else is going to happen? Everything else, including the rents and property values will be increased as well! However, the only one thing that will not increase is your fixed-rate mortgage payment. So, because the inflation pushes the cost of living higher and higher, your cash flow will only increase. This is why the real estate is often called “a hedge against inflation."

For more info please visit our Website.

https://invictusestate.com

17/11/2019

Reason #5 – EQUITY | Why invest in Real Estate?

One of the advantages of investing in real estate is being able to build equity. Equity is actually an asset that is part of your net worth. As you pay off your mortgage, you build equity. As you build equity, you now have leverage to acquire additional rental properties and increase your cash flow.

So, let me give you an example.

Let’s say we decided to buy a property and we apply for Mortgage. Actually, most real estate is purchased with a small down payment of let’s say 20% or 25%, with the balance of the money that is provided from the bank. Now, we have certain amount of the installment that we need to pay back to the bank every month, so over the time, this principal amount of the mortgage (20% or 25%) is going to be paid down, slowly at first, and then more rapidly toward the end of the amortization period. This principal reduction builds equity.

Basically, if our property appreciates in value over the time more than we are paying interest to the bank, we are definitely wining this game and building the equity.

So, equity is the difference between the market value of your property and the amount you owe the bank who holds the mortgage. Your equity is the amount of money that you would receive after paying off the mortgage if you decide to sell the property.

For more info please visit our Website.

https://invictusestate.com

14/11/2019

Reason #4 – LEVERAGE | Why invest in Real Estate?

The most important advantage of real estate investing is LEVERAGE!

But what is actually Leverage?

It is the use of borrowed capital to increase the potential return of your investment.

So how we can use the “borrowed capital” in our advantage when we invest in real estate?

Actually, there are two ways. First of all, we can apply for Mortgage and finance the property by bank loan or we can invest in real estate by payment plan given directly from developer.

Basically, there are two scenarios that LEVERAGE will work in our favor. Firstly, it will happen if the property appreciates in value over the time, and secondly if we decide to rent our property, so the tenant is the one who will actually cover over loan payment.

Let’s assume that we want to invest in a real estate that cost 1.000.000 for an example and it’s absolutely irrelevant what is the currency in this case. Now, if we will use “borrowed capital” of let’s say 75%, either from the bank as a Mortgage, or directly from developer as a payment plan concept, in this particular case we will invest only 250,000 as a down payment, right? So, let’s say if our real estate property would appreciate in value of just 5% over one year, it means that the value of the property is 1.050.000 now, right? So now, we are comparing this 50,000 against our investment which is only 250.000, and not 1 million, and because of that, comparing these two numbers (50.000/250.000x100) we are making 20% Return on Investment over one year - and it is called LEVERAGE!

Another example is when you buy a rental property using a Mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month. Because of the “loan pay down”, you can easily consider that your rental property is essentially a “saving account” that grows automatically, without you depositing money each month. Today you might owe 750,000 on a rental property (you remember we applied for Mortgage of 75% of the property cost of 1 million), so next year you might only owe 700,000 because the tenant is making the payment for you, every year, making you 50,000 richer. So, 15 years from now, your loan is fully paid down to 0. But now, you have a significant asset, a real estate that you can sell or continue renting, all thanks to your tenant who is paying the mortgage.

For more info please visit our Website.

https://invictusestate.com

14/11/2019

Reason #3 – APPRECIATION | Why invest in Real Estate?

Real estate, stocks, and precious metals represent assets purchased with the expectation that they will be worth more in the future than at the time of purchase.

By contrast, automobiles, computers, and physical equipment gradually decline in value as they progress through their useful lives.
As a general rule, assets that have a limited useful life depreciate rather than appreciate.

So, what is actually Real Estate appreciation?

In general terms, it is actually increase in the value of a real estate over time.

The phenomenon of capital value appreciation over time happens for a number of reasons, including (1) increased demand, or as a result of changes in (2) inflation or (3) interest rates on home loans, or due (4) the new infrastructure in the particular area and (5) the population growth in the particular city.

This is the opposite of depreciation, which is a decrease over time. So, in general, the value of real estate goes up over the time.

Yes, we know that the recessions do happen and the value of the property can go up and down. People can also buy at the wrong time of the market. But anyhow, we also know, because this is historically proven, that over the long period of time, the value will climb higher and higher.

So, if we enter the real estate market at the right time, in the right place, we know that the property value will go up, so that 20 years from now, everything will be worth far more than we are paying for it today.

For more info please visit our Website.

https://invictusestate.com

13/11/2019

Reason #2 – HIGH ROI | Why invest in Real Estate?

One of the biggest benefits of investing in real estate is the potential for earning a High rate of Return.

Usually, very good, but healthy ROI with investment in residential real estate should be between 5% and even up to 10%, so making this kind of profit on yearly basis, means that we could return all our investment within period of time of 10 to 20 years.

Now, if we compare this to other kind of investments, we can definitely conclude that this is much better comparing to the bank saving accounts, bonds, and even dividend-paying stocks.

For more info please visit our Website.

www.invictusestate.com

13/11/2019

Reason #1 – CASH FLOW | Why invest in Real Estate?

So, first of all, we need to understand that by investing in real estate, you can generate passive income, so your rental property will work for you even when you are sleeping.

By buying several rental properties that generate enough income to cover your expenses, you have the freedom to do what you enjoy.

So many people invest in rental properties simply because of the cash flow.
It is actually the extra money that is left after all the bills have been paid.
The cash flow can provide ongoing, monthly income that is mostly passive, allowing you to spend your time building a business, traveling or reinvesting in more real estate.

On the other hand, cash flow from the real estate is stable and far more predictable than most other businesses.

For more info please visit our Website.

www.invictusestate.com