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 The number #1 factor although amongst several others that makes real estate, commercial or residential a super attractive asset class is its Tangibi ]]></description><content:encoded><![CDATA[<div class="zpcontent-container blogpost-container "><div data-element-id="elm_B56-GOTmRAmfuQyGbpBKaw" data-element-type="section" class="zpsection "><style type="text/css"></style><div class="zpcontainer"><div data-element-id="elm_QOAVMm0PTQetbEuvUPy1mg" data-element-type="row" class="zprow zpalign-items- zpjustify-content- "><style type="text/css"></style><div data-element-id="elm_VqCJ14VCScuo18B_WiK1Pg" data-element-type="column" class="zpelem-col zpcol-12 zpcol-md-12 zpcol-sm-12 zpalign-self- "><style type="text/css"></style><div data-element-id="elm_5VKt7qVFRe6XWjjUgdiR5Q" data-element-type="text" class="zpelement zpelem-text "><style></style><div class="zptext zptext-align-center " data-editor="true"><div><div><div><div><div><div><style type="text/css"> .zpelem-col { } </style><div><style> .zpelem-image { } </style><div><figure><a style="cursor:pointer;"><img src="https://www.giccapital.co.uk/files/blog_images/residential-or-commercial.jpeg" alt=""></a></figure></div>
</div><div><style> .zpelem-text { } </style><div><div style="text-align:left;"> The number #1 factor although amongst several others that makes real estate, commercial or residential a super attractive asset class is its Tangibility - it is secured&nbsp; by a physical asset, making it not only overwhelmingly stable investment, but also a psychological as well as practical safe heaven for capital with various additional benefits. The general trend over time is that real estate will not only retain its value, it will more than likely appreciate in value, which in some cases significantly.&nbsp; </div>
<div style="text-align:left;"><br></div><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><div style="text-align:left;"><span style="color:inherit;"><div><span style="font-weight:bold;">1. Residential housing, is a universally global basic human need.&nbsp;</span></div></span></div>
<div style="text-align:left;"><span style="color:inherit;"><div><span style="color:inherit;">Whilst property is not a liquid asset class, it is an investment well suited to long-term hold strategy which also makes it perfect for wealth preservation.&nbsp;</span></div></span></div>
<div style="text-align:left;"><span style="color:inherit;"><div><span style="color:inherit;"><span style="font-style:italic;">&quot;People will always need a place to live.&quot;</span>&nbsp;</span></div></span></div>
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<blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><div style="text-align:left;"><span style="color:inherit;"><div><span style="font-weight:bold;">2. Risk Mitigation&nbsp;</span></div></span></div>
</blockquote><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><div style="text-align:left;"><span style="color:inherit;"><div> Because of real estate's nature as a physical asset, as long as investors regularly conduct&nbsp; property maintenance, keep up with mortgage payments where applicable, and take out appropriate as well as sufficient property insurance, it is highly unlikely that a real estate investor would lose their entire capital.&nbsp; <span style="color:inherit;">The same cannot be said for other asset classes.</span></div></span></div>
<div style="text-align:left;"><span style="color:inherit;"><br></span></div><div style="text-align:left;"><span style="color:inherit;"><div><span style="font-weight:bold;">3. Immediate and Regular Cash-flow &amp; Maybe Even Profit.&nbsp;</span></div>
<div><span style="color:inherit;">Unlike stocks and shares for example where an investor would have to wait for dividend distributions - assuming the company is doing well and opts to distribute dividends - with real estate he could and often will start earning cash flow immediately from rental income.&nbsp;</span><br></div>
<div><span style="color:inherit;">If purchasing at auction or as a result of distressed sale or below market value, investors often have equity in the property from day #1 of acquisition.&nbsp;</span><br></div><br><div> &nbsp; <span style="font-weight:bold;">4.&nbsp;<span style="color:inherit;">Equity Capital Appreciation Over Time. &nbsp;</span></span></div>
<div><span style="color:inherit;">Real estate investments can produce positive net cash flow each month if selectively bought and financially structured appropriately, they can also have the added bonus of equity build up over time,&nbsp; whether be it form mortgage balance pay off from rental income or rising property prices, capital build up and preservation is inevitable.&nbsp;</span><br></div></span></div>
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</div></div></div><div><style> .zpelem-text { } </style><div><blockquote style="margin-left:40px;"> &nbsp; <span style="font-weight:bold;">5. Leverage &amp; Financing Options Available Reduce The Barriers To Entry.&nbsp;</span></blockquote><p><span style="color:inherit;"></span></p><blockquote style="margin-left:40px;"><p>The many financing options available as well as taking advantage of them is one critical success factor for many real estate investors.&nbsp;</p><ul><li>Starting from as little as 20% deposit on a property and 80% finance on the purchase balance coupled with low-interest mortgage payments and even interest only payments..&nbsp;<br></li><li>No money down if sourcing and managing the property or having<a href="/joint-venture-equity" title=" joint venture partner" target="_blank">&nbsp;a joint venture partner</a> funding the 20% deposit.<br></li><li>Alternatively other options such as rent-to-rent mean, whilst you do not own the property, you control and manage it,&nbsp; therefore not even requiring a mortgage or the 20% deposit which could&nbsp;be a large lump-sum especially when just starting out.&nbsp;</li></ul><p>Should investors have adverse credit, which could make if difficult to get a mortgage, there are other specialist lenders and private<a href="/bridging-loans" title=" bridge funders" target="_blank"> bridging </a>lenders&nbsp;that over-look this factor and could be a viable option.&nbsp;<br></p><p><span><br></span></p><div> In contrast, if an investor wanted to buy £100,000 of shares, they would have to have this exact cash available vs real estate for a similar value property purchase where investor can have £20,000 cash and borrow the rest from the bank with all the other benefits inherent to this asset class.&nbsp; </div>
</blockquote></div></div><div><style type="text/css"> .zprow { } </style><div><style type="text/css"> .zpelem-col { } </style><div><style> .zpelem-text { } </style><div><blockquote style="margin:0px 0px 0px 40px;border:none;padding:0px;"><span style="color:inherit;"><div><span style="font-weight:bold;">6 . Flexible Time Commitment and Scalability.&nbsp;</span></div>
<div><div><span style="color:inherit;">Investors can commit full-time or part-time to suit. It is however advisable for investors to build a team around them as property investing like any business is a <a href="https://www.giccapital.co.uk/blogs/post/how-do-we-build-great-teams" title="Team sport" target="_blank">Team sport</a>.&nbsp;</span><br></div>
</div><div><span style="color:inherit;"><br></span></div><div><span style="color:inherit;font-weight:bold;">7. Tax Advantages&nbsp;</span><br></div>
<div><span style="color:inherit;">Subject to the right ownership entity structure and qualified professional chartered accountant advice, some common deductible expenses are:&nbsp;</span><span style="color:inherit;">renovations, p</span><span style="color:inherit;">roperty management expenses,&nbsp;</span><span style="color:inherit;">insurance premiums or&nbsp;</span><span style="color:inherit;">property tax.&nbsp;</span></div><br><div> A big plus is often, capital raising TAX Free. This means any equity pulled out of the property is Tax Free unlike other investment classes. Always seek professional advice, and a qualified account must always be on your Team as a real estate investor.&nbsp; </div></span></blockquote></div>
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</div></div></div><div><style> .zpelem-text { } </style><div><div style="font-size:12px;"><p><span style="font-size:11pt;">By CEO, <a href="https://www.linkedin.com/company/gic-capital-ltd/" title="GIC Capital" target="_blank">GIC Capital</a></span><br></p></div>
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