Getting financial freedom is a goal for most people. However, investing your pension on only one type of savings is actually very high risk. This is because inflation continues to occur in the world economy so that cash decreases in value. Seeing this lombok real estate , are there investment options that can be used as alternatives? Many investors in the last five years went bankrupt, even due to the best stocks. Not surprisingly, then investors then glanced at the real estate sector as an alternative. The following are common reasons why many people choose to invest in lombok real estate.
1. Tax free cash flow
One of the main benefits of real estate investment is depreciation and deduction of credit interest (if you use the capital you have) as well as tax-free cash flow. Investors can wait for capital gains from the sale of property in the future, without having to include tax expenses in their cash flows.
2. Increasing tax deduction strategies
Based on your tax status, the rented property will not only provide tax-free cash flows but can also be used as a tax deduction for sources of income. Before investing, you are advised to consult a tax professional.
3. Diversification of the portfolio
Another advantage of investing in the real estate sector is the opportunity to minimize your risk. Real estate has a low or negative correlation with other large assets. This means that having real estate in your portfolio can reduce volatility and provide a higher income.
4. Avoiding inflation
Developing countries continue to strive to control inflation. Consumer prices in Indonesia increased by 4.45 percent year on year in March 2016. Higher prices for food and settlements continued to drive inflation. The historically real estate investment shows the highest correlation with inflation compared to other large assets, such as stocks, bonds, and corporate bonds. Because the government continues to print money to stimulate growth, owning real estate assets to protect against inflation is a smart move.