Some people avoid real estate investments because they think they are scary or need a lot of money to invest, but neither is accurate!
Here are 4 reasons you should consider investing in real estate (yes, even in today’s market!):
#1 PROPERTY APPRECIATION
On average, real estate appreciates 3% – 5% a year without you doing anything except maintaining the home. But, you can increase the rate of appreciation by making renovations or repairs. Whether you make improvements or not, in a few short years, you’ll typically be able to sell your property for more than you paid for it.
2. PREDICTABLE CASH FLOW
If you buy and hold real estate, you can earn monthly cash flow renting it out, and this increases the profits from owning real estate since you aren’t relying only on the appreciation, but also the monthly rental income.
3. TAX BENEFITS
Like any business owner, investors can take advantage of many tax write-offs. While it’s an investment, when you own a home and rent it out, you run a business – you are the landlord.
As the business owner, you can often write off the following expenses: The mortgage interest paid on the loan, maintenance expenses, homeowner’s insurance, and HOA dues.
4. WEALTH BUILDING
Your net worth grows as you build equity, collect passive income, and then set the cycle on repeat. When you invest in real estate long-term, you know you have an appreciating asset.