Is Real Estate a Good Investment

Mortgage and Lending with Diamond Residential Mortgage Corporation 031.0016549 NMLS#219299

Is Real Estate a Good Investment
Investing in real estate is a great way to make your money work for you. Today’s economy actually supports this proposition in two ways: mortgage interest rates and property prices are low right now, so a purchase won’t cost as much as it might in a couple of years; and the market is recovering all over the country, so your investment should appreciate steadily, starting almost immediately.

There are a number of different ways to get into real estate investments, and there are a number of things to keep in mind when you plunge into this type of investment. Here is some information to get you started.

Weighing the Benefits and Costs
Benefits of owning investment properties include:
  1. Diversity in your financial portfolio.
  2. Rising income from rental fees over time means more cash in your pocket as you pay off your mortgage.
  3. Tax benefits of depreciation and expenses*.

While the drawbacks include:
  1. You’ll need to be able to weather periods when your property sits empty and you’re not getting any income toward the mortgage.
  2. Be prepared for calls at all times of the day and night if something goes wrong. A burst pipe or leaking roof can’t wait, even if it’s your anniversary or you’re on vacation.

Something many people forget when looking to buy property is that there are more costs involved than just the mortgage and insurance payments. Even if you’re buying a property to resell, you need to calculate how much you can put into any updates or renovations; if you’re looking into rentals, there’s long-term maintenance and upkeep to consider.

Location, Location, Location. San Francisco and New York City have the highest priced homes in the country. Why? As the saying goes: You can’t make more land. Demand is super high in these areas and numerous other locations around the country. Remember, your investment doesn’t have to be in your backyard, or even your state.

Consider taking it easy. If you’re looking for a rental property, you can often purchase one with tenants in place that could include a property manager as well. While this type of real estate may not reap such high returns, you will be getting the hang of owning investment property, which can be tricky for first-timers.

On the flipside. House flippers — yes, like on TV — are still doing well in some markets. Be aware you need to have a lot of cash on hand to make house flipping work for you, and if you can do the bulk of the work yourself, even better.

The benefits of investing in real estate outweigh the costs for many people. If you’re thinking that putting your money into real estate as a long-term growth solution is right for you, contact me to take a look at the numbers and review your financing options. Together we can determine the best ways to maximize your real estate investment returns.

*We are not a tax advisory firm. The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Consult your tax advisor or the IRS for current tax year rules, restrictions and regulations.


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"Wealth is what you accumulate, not what you spend." 

With Respect; 

William Piotrowski

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David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Great points, real estate is a long term investment and know your market, to many jump in without understanding what they are doing

Oct 16, 2015 02:52 AM #1
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

 I have consistently urge my clients to buy one rental property as soon as they can afford it and already have clients with rental properties earning them money they never imagined they'd have. RE is the best money investment ever if you know what you are doing. 

Dec 07, 2015 10:01 AM #2
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