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Question 74/86

What is a reason to invest in real estate?

A. Sales tax advantage.

B. Capital appreciation.

C. Irregular return.

D. Capital depreciation.

Correct Answer: B

Capital appreciationis a primary reason to invest in real estate, as property values tend to increase over time due to:
* Market demand and location benefits.
* Inflation and economic growth.
* Improvements and development projects that enhance property value.
* Why the other options are incorrect:
* (A) Sales tax advantagesare not a primary investment driver.
* (C) Irregular returnsintroduce uncertainty, which is not a strategic reason for investment.
* (D) Capital depreciationoccurs due to asset wear and tear but does not justify investment.

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