8 Reasons why real estate proves to be the best profitable business
It is said that the real estate survive until the man decides to live in home. So real estate has never ending business and it has bright future in long way so far. The investment is one time and the profit gain is lifetime if you rent out your property.
So these 8 reasons prove that the real estate is the best profitable business.
1) One time investment
This is the most crucial factor of real estate that it has one time investment. The investment is a type of fixed asset that utilized for many years in future. Let’s take an example, if you invest money to buy a house or you build it.
The purpose is to rent it. Now suppose the buying or building a house that all process completed. Then you have to rent your house or property for residential or commercial purposes and take the rent for life time, later you won’t need to re-invest again or there is no any depreciation cost except the painting the house after particular time frame.
Now compare with the manufacturing sector or any service sector, you have certain amount in term of depreciation and it force to re-invest some amount after fixed time frame. In manufacturing sector, the investment made in machinery to manufacture the goods will suffer the breakdown. Then the repairing cost involves.
There is another threat of technology advancement. The new technology emerging at fast pace and old one become obsolete, in order to survive in the completion you have to procure the new machine or technology. Then you have to re- invested your money again. But in real estate you don’t need to do this.
2) Very less or No maintenance cost
This is another added benefit of real estate. You don’t need to burden your pocket for paying the maintenance charges. It doesn’t involve any maintenance cost like other sector. If you take any sector, either manufacturing, service sector, health and medical sector, transportation and communication, you have to pay the maintenance cost or the repair cost after certain period of time.
The real estate is only sector where you don’t need to pay the maintenance cost or repair cost. A very little cost of painting or other repair involves after certain period of time. So you not need to stress on your pocket more.
3) Very easy to start
To start the real estate business you don’t need to complete the complex or complicated formalities. It not much time consuming process, you don’t have to suffer the headache of completing various legal formalities.
Take a look if you want to start any business other than real estate, you need the quotation, have to go through many legal formalities, documentation and requires the license in some cases. These are too much hectic and time consuming processes. It will smash you by mental stress and cost the money to pays the fees during the legal procedure.
To start real estate business you have to make the property document that mentioned the owner name details and the property detail. The legal formality of these document are easy and don’t required time to complete the formalities. It may complete max within two to three days and does not require any major charges to pay for fees.
4) Does not require education or skill
To start the real estate business, you don’t need any college degree or special skill. Anyone can invest in real estate business. Unlike the other business or services that demand the special skill in that field. One more added benefit of the real estate business is that you don’t require any experience in this field.
You can become successful and perform well without any experience. It is real fact that the other business demands the experience in that field or some skill associated with that business. If some don’t have the experience or skill regarding the particular business, the several losses may occur.
In real estate business there is no any chances of losses. If you have your property in right place, you are always in demand. It also don’t involve the problem of accounting, it has simple and easy accounting because it does not have too many business transaction. Simply you have to keep record of rent received monthly.
5) Best Price in Future
Another added benefit of real estate business is it gives best price in future. As property rates are increasing day by day. The land has still too much important because it size is constant irrespective to the increasing population. So there is much hike in the property rates in future.
Your future is always bright in the real estate business. If you see the rates of the property 10 to 15 years ago were half of the current rates. In next 10 to 15 years later, it is expected to four times rise in the rates of the property.
So it is always a good decision to buy the property as early as possible. The late decision will cause the stress on your pocket, because the rates of property will never be in downsizing, the rates always are in upper trend always.
6) Don’t need to time your business
In fact suppose if you are in other business you need to constant watch on your every business transaction. You have to attend meeting, direct your team and need to go the office every day to closely monitor your business.
You also can’t take much leave. If you are in the long vacation, then in the absence of you, you will not sure your business working fine. You will always be in the stress and anxiety and even you find difficult to enjoy your vacation or journey with stress free and enjoying.
But these all things are not applicable for the real estate business. You don’t need to time your business. Also you don’t need to go to office daily. Your transactions are not occurring daily, just at the end of the month you need to check your account. The money automatically will deposit in your bank account. Your customers will transfer the rent amount in to your bank account.
Now you can take long vacation or you can go to travel the world. You will enjoy your vacation fullest. You will experience no stress, no any anxiety of your business. Your business always be secure in your absence.
As per my opinion, the real estate is the only business that feels your pocket with money and can feel the joy in your life; you will experience the real freedom. Freedom from all type of stress, freedom from all anxiety and freedom from fear of being suffered in losses. There is no limit for your leave and your vacation because you will always be free person.
7) Options to Generates passive income sources
Due to free time available for you, you can focus on other passive earning option if you want to boost your income strategy. It solely depends upon you and your decision to choose any passive income idea or you can convert your hobby in to income generating stream.
Suppose you passionate about painting or painting are your hobby, then you can become expert in this field and can put your painting in exhibition and earn money. If your hobby is to play sport, then you will become sportsman. If you are passionate about writing, then you can write the blog or books and earn royalties. There are so many ways to turn your passion and hobby into income generating stream.
This is another added advantage for you. But you can’t even think about the passive income stream if you are in other business. Because you don’t have much time to think and do to generate passive income stream. When you busy handling your business all the day, it is difficult for you to think about the passive income ideas. You are always struggling to survive your business and think about the potential threats.
8) Satisfaction throughout the life
One more important aspect of real estate business is that it gives you satisfaction entire life. Because you live the stress free life and it is scientific reason that more stress free you have, long life you will live. So in addition to the monetary benefits, you can have the health benefits as well. The main reason behind the stress is the loss in the business or stress of working of long hours. In the real estate business it won’t happen with you. You can actively involve in social services, and participate in various social events. That is the reason why some of them become politician or social activist.
Your social interaction will grow and you can participate in many volunteering activity to help and bring smile on someone else faces. It is true that more you help the people who are in trouble in the society; more you will live happy and satisfied life.
Because ultimately the smile on someone else face makes you happy. This helps you to improve your personality and well-being. Many famous politicians have in the business of real estate, so they have plenty of time to focus to grow their career. In other words, who wants to be the politician or the social activist, the real estate business is best for him or her.