Saturday, June 11, 2016, AM | Leave Comment
To many people, real estate investing sounds like something the average person can’t get involved in. However, more people are learning the value of buying and holding on to real estate as an investment.
It is certainly not a venture reserved for old people either. College students, who are wise with their money, have been known to buy a property and start collecting rental income before they walk across the stage with their degree.
With determination, savvy and wisdom, anyone can and should invest in real estate.
Consider these four reasons:
Forced Retirement Plan
Most Americans haven’t prepared adequately for retirement, some may even have no retirement savings at all. However, when a person invests in real estate, it’s like having a forced retirement plan.
Once the properties are paid off, they are considered assets that can be sold or rented out to others for consistent cash flow.
Real estate investing is a great form of passive income. Once you purchase a property and become a landlord, though there will be times that tenants will need help with maintenance issues, the income is consistent and reliable.
Owning several homes and renting them out to various tenants will allow you to pay off those properties quickly and then continue to enjoy the cash flow.
Be sure to invest in an area with a wide appeal to attract potential buyers or investors.
It is important to have assets outside of an income from a single job. When you invest in real estate, you simultaneously increase your net worth.
Net worth is very helpful and important, especially if you are trying to leave a legacy. If you’d like to leave money to your children and grand-children, real estate is one of the best ways to do this.
They can decide to keep the properties and continue renting them out for cash flow. Or they can sell the properties for one large, lump sum and invest that money in another way.
It’s not always about how much money you have but it’s also about building assets and creating wealth.
Taxes are one of the main things people hate to pay. However, as a real estate investor, you can do a lot of tax write-offs against your personal income which will help.
According to the experts at the Dee Evans Group, “mortgage interest up to $1 million is completely deductible for the year in which you pay it to buy, build, or improve your principle residence plus a second home.”
You also can enjoy the benefits of tax-free income because of depreciation and mortgage interest deductions!
Real estate investing might sound like it’s a difficult endeavor to take on. However, when you have the right real estate investor and do your homework, you can experience a whole new type of financial freedom.Facebook.com/doable.finance