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The advantages of real estate investment in Tunisia are astounding. Beyond its fiscal benefits and opportunities for passive income, real estate investment presents several other advantages that any real estate investor can leverage. If you are considering investing in real estate in Tunisia, here are some of the most discussed advantages in real estate investment.
- I-Key Advantages of Real Estate Investment in Tunisia
- 1- No Diploma Required
- 2- Portfolio Diversification
- 3- Passive Income
- 4- Appreciation
- 5- Protection Against Inflation
- 6- DIY Dream Achieved
- II-Conclusion
I-Key Advantages of Real Estate Investment in Tunisia
1- No Diploma Required
One of the greatest advantages of real estate investment in Tunisia is that no formal education is required. In addition to conducting research and developing at your own pace, purchasing a real estate investment can take as much or as little time as you desire.
While real estate investors may not need a diploma, it is crucial to ensure that you are financially and mentally prepared for future investment scenarios. So, if you’re considering entering the real estate rental market, go ahead. Real estate investment provides you with the freedom and flexibility to immerse yourself in any investment at any time.
2- Portfolio Diversification
Let’s consider real estate investments as stock market investments for a moment. What happens when a stock investor only buys technology stocks, and suddenly the technology market takes a downturn? This stock investor has now positioned themselves where their overall portfolio has taken a negative turn.
The idea is that if you put all your eggs, so to speak, in the same basket (such as the stock market) when it comes to investment, there is no diversification of your real estate portfolio. So, what is the diversification of a real estate portfolio? It means having a real estate investment portfolio with different types of investment properties.
Whether you’re earning rental income from a fabulous rental property (seaside house, entire building, commercial real estate, etc.), flipping and selling houses, or even investing in Real Estate Investment Trusts (REITs), diversifying an investment portfolio with different types of properties significantly benefits real estate investors if one property type takes a downturn.
3- Passive Income
Investing in specific real estate properties, such as rental properties, creates an opportunity for passive real estate income. Yes, like any property owner, landlords spend a substantial amount of time ensuring that everything is compliant and ready for the tenant.
A landlord may even overhaul a rental property, hoping to command a higher rent. And, of course, a careful selection of tenants is crucial for any landlord to increase the chances of securing a tenant who takes care of the property and pays the rent on time. From background checks to credit reports, scrutinizing a tenant before signing a lease is essential.
Let’s put it this way: landlords should bid farewell to any passive income if they are willing to risk not screening a potential tenant.
4- Appreciation
One of the significant advantages of real estate investment in Tunisia is the opportunity for each investment to appreciate. In the realm of real estate, appreciation is the increase in the value of a real estate investment over time. Most of the time, the real estate market tends to appreciate properties over time. When investing in real estate, it is crucial to do your due diligence to ensure that you are in a growing area where market values are consistently increasing.
On average, you can expect the value of your investment property to appreciate by 14.5% each year.
5- Protection Against Inflation
Inflation makes some people nervous, but real estate investors typically don’t have to worry too much. Most of the time, real estate markets are not significantly impacted by inflation. In fact, real estate investments often have a tendency to increase in value when inflation rises.
In a world experiencing inflation, as is currently the case, the expenses to maintain a property typically increase. Whether it’s the cost of labor or a rise in paint prices, if you find that inflation is significantly impacting your profitability, it might be time to rework your investment strategy. For instance, for those in the rental property space, an increase in rent can help offset inflation and maintain the positive cash flow for your rental property that you are accustomed to.
6- DIY Dream Achieved
Certainly, real estate investors may outsource tasks such as painting a house, replacing a roof, or installing a new floor, but for DIY enthusiasts, this is where the love for the game begins. Instead of outsourcing the work, DIYers undertake various tasks on the property using an ever-evolving set of skills they may have acquired by watching friends or family members or simply deciding one day to dive in, learn, and do the work themselves.
II-Conclusion
The good news, whether you’re investing in rental properties or renovating and reselling, is that it’s up to you to decide how much work you want to do yourself.
Indeed, DIYers save a ton on labor costs and ultimately put more money in their pockets.
