These days, technology has opened up a new world of investing to a lot of people. From apps and cryptocurrency to classic stocks and bonds, it is easier than ever to invest. Spending a bit of time on youngandtheinvested.com will give you some ideas on just how easy investing is these days.
There is still one old fashioned way to invest that has been one of the best ways to make a profit that goes back thousands of years.
And that is to invest in real estate. Although there are no guarantees when you invest that you will make a profit even with real estate, it does provide one of the surest ways out there. It can be a very passive way to generate income too as you build equity over time.
In this article, I will go over several of the reasons that you should think about real estate if you want to invest some cash.
It starts paying right away
If you are looking into investments that generate an income then buying rental properties is the way to go. In many cases, the property is in good enough shape to rent it out right away and start making money immediately. Even if you have to fix it up a little bit, as soon as the work is done and you’ve found reliable tenants you will start collecting checks every month from your property.
Then there are small apartments that can be converted into Airbnb rentals that will pay themselves off in no time if you live in an area with lots of tourists. You can do thousands of dollars per month in short term rentals during the height of the tourist season. And if you can afford multiple properties then you can buy beach property for the summer and mountain property for skiers in the winter.
Lots of tax breaks
The government is always encouraging home sales because it helps keep the economy rolling. People fixing the houses plus the agencies selling them are key factors to a healthy economy. So there are always incentives to buy like tax deductions and credits.
You are able to deduct interest from the mortgage, any expenses on renovations. Over the course of the year, you can end up saving thousands on your taxes which can then be used to buy more property or use for other investments. Real estate is the gift that keeps on giving.
In just about any economy your property value will increase. Sure, there are bubbles that burst and end up lowering home values, but it is always temporary. If you can wait out selling for a few years then you can often see the property increase in value even after a crash.
And even then, when the economy goes bad, there are usually people that need to rent because they can’t afford to buy so there is still money coming in while you wait for the appreciation to speed up.
Even as the house or property gains in value, the price of rent usually increases along with it.