Why Should You Invest In Real Estate?

By
Real Estate Agent with Long and Foster Real Estate, Richmond Virginia 022 600 969 6 Virginia

With the stock market experiencing increased unpredictability, many investors are turning to alternative ways to balance their portfolios. A survey by Bankrate recently found that 28% of investors prefer real estate, as opposed to only 17% who chose stocks. So, what makes real estate an attractive investment? There are 4 main reasons:

 

  1. Cash flow- A rental property brings postitive cash flow in the form of monthly income. A rental property can also include vacation homes such as a beach house, or even using Airbnb to rent out extra rooms or separate buildings on the property. 
  2. Tax breaks- Deductions and depreciation are two tax advantages to owning real estate investments. Your tax professional can advise you how to best take advantage of these and other perks. 
  3. Principal reduction- As your tenant pays down your mortgage, the equity in your property rises, helping you to increase the return on your investment.
  4. Appreciation- When you invest in the stock market, your return is calculated based on a percentage of the money you have invested. In real estate however, appreciation is calculated based on the total value of the property. This means that even if you only put 20% down on your investment property, appreciation is calculated based off the entire value, not just the amount you put down. 

 

So, where do you begin if you are interested in diversifying your investment portfolio by purchasing a rental property? With a real estate team that knows the best areas for rentals, and can help you make the numbers work. Witht the hot spring market in full bloom, now is a great time to start looking at your options and begin bringing in that positive cash flow. Contact Treehouse Realty VA, Long & Foster Gold Team today to begin your investing!

 

Written by Haley Beck of Treehouse Realty VA, Long & Foster Gold Team

2931 Polo Pkwy, Midlothian VA

(804)516-6915 | bestrvahomes.com |haley.beck@lnf.com

Licensed Realtor in the Commonwealth of VA

 
 
 
Posted by

WandaFears, Realtor ABR CRS GRI WCR

Richmond, Va. Long and Foster Realtors

www.wandafears.com
wanda@wandafears.com


804-909-2777

www.facebook.com/wandafears

Comments (2)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Wanda,  Excellent suggestions for people to think about and do something about.

Apr 30, 2018 10:24 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Great points Wanda. It's also a great way to diversify your investment portfolio. 

Apr 30, 2018 11:15 AM