As the average price of homes for sale in Summerville continues to rise, (Summerville Market Conditions ) I want to remind each of you why you should be investing in Summerville Real Estate now! Cash Flow versus Building Wealth
Do you want cash flow or do you want to build wealth? If you get stuck concentrating on cash flow, you will have a hard time justifying investing in real estate. However, in order to build wealth you need to take the long view of building wealth.
Investment properties can be purchased with 10 to 20% down. For example, if you purchased a property for $150,000 and put down 20% (30K), your approximate payment per month would be $912. If you were able to rent it for $1,100 the note payment would be covered. This yields an 8% return on the original cash invested. The real estate market typically appreciates 3% annually and certain markets, like homes for sale in Summerville, have seen a much greater appreciation.
This Duplex Investment Property in Summerville was Just SOLD.
Your entire interest payment is tax deductible and every month your mortgage balance is reduced. Don't overlook the fact that someone else is paying your mortgage through their rent. The total of these benefits will yield a return of over 15% on the cash invested. The true building of wealth occurs at the end of the process when you go to sell your Summerville home.. The average property will double in value every 15 years. This will return over 900% on your original investment.
As you can see taking the long view will pay off handsomely and you will reap the rewards in the future. If you would like to talk more about investment properties for sale in Summerville, contact me. During the spring market, many of these properties come on the market but they sell quickly. Every year is a great year to start building wealth and investing in the future!
**Originally Posted at www.SummervilleRealEstate.wordpress.com**