5 Reasons Why You Must Invest In Real Estate In Africa

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REAL ESTATE IS IMPACTED BY RENT CONTROL
5 Reasons Why You Must Invest In Real Estate In Africa

5 Reasons Why You Must Invest In Real Estate In Africa

Most wealthy people can attribute their wealth to real estate. Real estate remains a great investment for many reasons. It is a secure way of enjoying an excellent rate of return, an avenue for profitable investment, and an amazing tax advantage.

If you thinking of investing in real estate in Africa, these are some good reasons to start.

1 . APPRECIATION OF VALUE

History continues to prove that the value of the real estate will continue to increase over time. The real estate industry has always recovered from previous bubbles and crises that caused the value of properties to fall. Now the prices and appreciation of the property are back on track.

For other investments like the stock market, the risk of loss will always be there but housing being a tangible asset can be leveraged to capitalize on the various streams of revenue.

 

2 . PROVIDES A STEADY CASH FLOW

Cash flow is the net income from a real estate investment after payment has been made for a mortgage and other operating expenses. A house you buy or have built can earn you a passive income when you rent it out to others. (It could be monthly or yearly depending on your preference or contract with tenants).

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The price of accommodation is always on the rise, therefore, it means more money for you as the estate owner. Comparing real estate to other investments, one can say that is a steady source of income.

STEADY CASH FLOW
STEADY CASH FLOW

3 . THERE IS A TAX ADVANTAGE

Tax deduction on real estate can compensate for income and reduce overall taxes. Properties that have depreciated in value are sometimes given a tax break by the government. Real estate owners who are investing for the long term receive a lower tax rate.  It is easy to deduct the cost of owning and managing property.

5 African countries with lowest tax rates
TAX ADVANTAGE

4 . CAN BE USED AS LEVERAGE

One of the benefits of owning a home is that you can use it as leverage by investing a small amount of your money and borrowing the rest of the money to buy or build the property. Most often, homes are preferred to cars because their values keep appreciating, so when you invest in real estate your property can be used as collateral from the bank.

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LEVERAGE
LEVERAGE

5 . YOU CAN IMPROVE UPON IT

One advantage of owning real estate is that you can improve on it constantly. As a tangible asset, you can improve the value of any property and increase its worth.

The above reasons are what make real estate a more advantageous investment than other investment options.

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