There are many different investment paths. From stocks, bonds, funds, businesses, real estate and more. Anyone can invest in real estate and now is one of the best times to learn how. But why real estate?
- Building Equity- Appreciation is the increase in the property’s value, which generally occurs over time and can be increased by investors who add value to the property through repairs and enhancements. Consider renting your new property ensuring your rental income covers your monthly mortgage payment, essentially using other peoples money while you gain equity and financial freedom!
- Inflation- With the governments persistent printing impacting inflation, real estate generally goes up and is one of the best ways to hedge against inflation.
- Leverage- Leverage is a powerful reason to invest in real estate. Just a limited amount of money can be employed to control a larger amount of stock than would be possible through a direct purchase made with available cash. Consider an investor with $50,000 in cash who uses that money to buy 1 home. If it were sold for $55,000, the investor gains $5,000. If that same investor, allocates that original $50,000 in cash towards the down payment on 10 different homes each valued at $50,000, financed the rest of the money then sells each home for $55,000, the investor now gains $50,000! That’s a 100% ROI!
- Depreciation- Even with an increase in the property’s value the government allows owners a tax deduction of their property over its life span.
- Tax Benefits- In addition to depreciation, an investor can usually claim the interest portion of his monthly mortgage payment as a tax deduction.
Ultimately, the decision to invest in real estate should not be taken lightly but if you are tired of working for someone else while they gain from your hard work, then tell me you are ready to take control of your financial future! We can work with you from credit repair, budgeting to strategic investment planning. Call us today for a free consultation.