Can Real Estate Make You Wealthy?
For most Americans, just owning real estate will make you wealthy. According to the Federal Reserve, a home-owning family is 45 times wealthier than a family that rents. That’s some great news!
But what if I told you that if you bought an investment property, you could accumulate more wealth? Real Estate investing is a safe and surefire way to get rich.
How Can You Make Money in Real Estate?
One of the best ways to make money in Real Estate is to buy an investment property that you hold long-term. This is one of the most popular strategies for real estate investors because it allows for a steady cash flow while gaining long-term appreciation.
While you are renting the property, your mortgage is being paid down by the renter and you can be putting extra money in your bank every month. You’ll make money with passive income while your investment appreciates.
Then there is flipping a house for profit. Nowadays, turn on any home improvement channel on tv and you will see investors fixing up a house and selling it. Who wouldn’t want to make $40K in just 2 months?
Depending on where you’re located you may consider setting up your investment property as an Airbnb or short term rental. These types of rentals are becoming extremely popular for making money.
What Types of Property are Ideal for Investments?
There are many types of property that are ideal for investments. Single family homes, multifamily homes or apartment buildings are all great for investments for the buy and hold approach.
Single family homes and multi-family homes are perfect for flipping investments. What is flipping? Just turn on any home improvement tv show and you’ll see people buying a run-down house, fixing it up and flipping it for a profit. Who wouldn’t like to make $40K in just 2 months?
Tax Benefits of Owning Real Estate
Investing in real estate, as opposed to the stock market, brings you many tax benefits. You can take tax deductions on your mortgage interest, property taxes, insurance and depreciation.
Real estate investment income is not subject to self-employment tax. Also, the government offers tax breaks for insurance, maintenance repairs, property taxes and property depreciation.
Demand for Rental Properties is on the Rise
In most major cities around the country, including Phoenix, rental properties are in high demand. Housing prices are starting to rise and mortgage rates are going up. This means that there a lot more people looking to rent than to buy.
The risk of rental property demand in the real estate market going soft really will never happen. There will always be people who will rent a well-priced house or apartment for many reasons. Possibly they just moved to town, they are saving for a down payment for their own home, or they prefer to rent.
In fact, the real estate investment opportunities will continue to grow. Especially in major cities and fast growing areas.
How can I Help You to Invest in Real Estate?
For real estate investors I can help you find the property that will help add to or start your portfolio. I am a full time Realtor with years of experience working with real estate investors and understand the needs of the investor.
I can help you determine the cash-flow calculations of a purchase and the income potential for the area. I will set up automated MLS email alerts that will keep you up to date of new listings and price reductions.
Today is the perfect time to start investing in the real estate market. Why wait? Call or contact me today!