Buying your own home is a dream come true, but investing in real estate is another thing all together. You have to keep a clear, clinical mind while evaluating properties, choose one or two, negotiate with the buyer, buy the property, then rent, sell or flip the property to make a profit. It is a long and carefully thought out process. Most people don’t want to put in that much effort but they couldn’t be more wrong, says Jeff Adams.
Buy Property?
The real estate market may have taken a knocking in the last few years but it is still one of the most popular investments options in the world. So, why should you invest in real estate?
- Investing in a safe option – Land is land and a house is a house. That will not change. Compare this to stocks and bonds that actually turn worthless when the market tanks. Even if the real estate market falls, you still own what you have purchased.
- Large range – There are so many options to choose from that you can invest any amount of money. Almost every billionaire will tell you that the journey started when they purchased their first property and watched the property appreciate in value. This gave them the valuable lesson that buying the right property could make them rich. As a novice, all you have to do is find something that will click in the same way.
- Positive cash flow – Almost all properties generate a positive cash flow. For example, commercial or residential property can be rented or flipped. At present, rental rates are at an all-time high and you can make a really good profit. You can also install accessory sources of income like vending machines, etc. to generate an income. The best part is that as your property appreciates in value, you mortgage will lower, and you make more income.
- Tax benefits – You can claim several tax deductions when you purchase property. This may include loan interest, agent fees, building maintenance, repairs, rentals, building depreciation, and property taxes. This will save you a lot of money at tax time!
- Maintenance is not a headache – You may be worrying about the actual logistics of running a completely new home. This means repairs, renovations, and generally more work. The good news is that you can now hire property managers to look over your property and get the best from it.
There are many more benefits to investing in real estate but we cannot cover them all here. If you are new to real estate investing, it would be a good idea to learn a little about the market before jumping in with both feet. Experts like Jeff Adams, the #1 real estate trainer, hold orientation classes that could help you make the most of your skills while investing in real estate.
You may make mistakes and you will learn from your mistakes but real estate is one of the most robust investments options in the world and it will remain popular and profitable.
