Why invest in real estate

Why you should invest in real estate

I recently read that in order to effectively save for a comfortable retirement, yes I’m at that age where we thinking retirement in a few years, you should use the 25 times rule.

The 25 times rule basically means that whatever amount you need to live annually should be multiplied by 25 to retire comfortably.

This naturally doesn’t account for inflation or any disasters that may see you loose money in those years. Leaving you hoping to still live comfortably by 90.

So, how do you ensure that you can retire comfortably?

There are a few things you could do but one of those is to invest in property.

Why invest in property

By investing in real estate you hold. Few advantages over investing in things like stock, bonds, mutual funds or crypto currency.

Your real estate will offer you a fixed income if you rent it out as a predictable income source. Property also only appreciates in value, so you can always make a profit on your real estate when reselling.

Ten reasons to invest in real estate

In fact there are many advantages to investing in real estate, which is a self sustaining asset rather than stocks or bonds, which are self liquidating assets.

Here are ten top reasons why you should invest in real estate

  • Real estate offers a predictable cash flow
  • Real estate appreciates in value
  • Real estate can be leveraged
  • Real estate provides you with an equity build up
  • Real estate is improbable
  • Real estate coincides with your retirement
  • Real estate can be tax deductible
  • Real estate is depreciable
  • Real estate has a lower tax rate
  • Real estate gains can be deferable

Where to invest

Naturally your real estate property will hold a different value in certain areas. So, choosing where to invest is important.

There are those that will tell you to just buy anywhere but if you are investing with specific goals like rental property, reselling or for your retirement you may want to take certain criteria into consideration before committing to the purchase of property.

Things like :

  • Buy in the right area taking things like schools, shopping centres, public transport and area growth into factor.
  • Buy for the long term you may invest to first rent your property put but could find several years later, you may need to reside there.
  • Buy a home to live in that will meet all your personal needs, limiting the need to build on or do costly renovations. Don’t buy a home that’s too small.
  • Stick to your budget no matter how tempting it is to add a little extra
  • Don’t be so taken with unnecessary features that you lose sight of important requirements.
  • Do your research
  • Ask as many questions as you need to. No question is unimportant. Real estate properties are long term investments that are costly. You should have all the answers you need before committing.
  • Put a deposit down.
  • Shop around for your bond.
  • Beware of the hidden costs. Things like conveyancing fees, transfer fees, deposits for electricity and water will all need to be paid.
  • Don’t get despondent. Keep looking for the right real estate in the right price range for your budget.
  • Never rush into a sale. Always take your time before committing.

Real estate in a foreign country

Some companies and investors choose to purchase foreign property, these are usually quick sales and most often for resale and investment as opposed to as commercial homes for themselves.

If you are looking to buy any real estate in a foreign country it is best to work through an agent like David Ebrahimzadeh

An agent usually has the correct knowledge and experience to use your budget and goals to purchase the real estate that will best serve your needs.

They are able to quickly and efficiently handle any financial, legal and government requirements needed to ensure your sale is made.


Regardless of where you buy, how much you have to invest or if your real estate purchase is for investment or as your home, you can never go wrong investing your hard earned money into property.

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