The 2009 recession lowered property rates, and made real estate investors leery of any kind of property investment. That was then! Now, large and small investors have hopped on to the real estate bandwagon. Low mortgage rates, relaxed lending standards, and lowered credit rates have made it possible for investors to buy property almost anywhere in the United States says real estate professional Jeff Adams.
As a private investor, this is a good time to invest in the market as property prices are low. However, people do tend to worry about investing in property and land. What is the guarantee that property prices will remain stable? What if this is a real estate bubble and what if property rates fall again? Before you start worrying, you should know that investing in real estate can maximize your cash investment quite easily.
Property Appreciation
Depending on the property you have chosen, you can expect the property price to increase anywhere from 2% to about 20%. The appreciation value is more for commercial property and slightly lower for residential property. Ideally, the value depends on just how well you have chosen the property at the time of purchase.
For example, New York City has a floating population with a high demand for residential and commercial property. On the other hand, small cities like Austin show a demand for single family accommodation. Depending on local factors, you can easily expect your property to increase in value over time. This increased value can be leveraged into a loan to buy more property, thus increasing your overall investment.
Positive Cash Flow
No matter what type of property you have purchased, you can easily rent it out to have a constant flow of cash. Most property owners now hire property management companies who ensure that there are rental tenants all through the year. This way your property is occupied and there is constant cash flow all through the year.
100% Control
Property can also be used to add value to your overall investment. For example, shares and stocks are bound by market rules. However, if you like a property, you can renovate, subdivide or even redevelop the property and use it as a warehouse or as an open space for events, etc. Unlike stocks and bonds or even gold, you can easily maximize your property investment to ensure you get the most from it.
Tax Breaks
One of the most important profits of investing in real estate is the tax breaks offered to investors. You can write off investment expenses, renovation expenses, mortgages, etc. to lower your income tax. This indirect profit alone makes investing in real estate worthwhile.
Investing in real estate is a good idea. You can get expert help from professionals like Jeff Adams – #1 Real Estate Trainer. By learning from professionals, you can find affordable property, purchase it, rent it or flip it for resale, resulting in a comfortable profit and you can do it safely. However, all of this depends on finding the right property for investment.
