Why You Should Make 2018 the Year You Invest in Rental Real Estate
December 19, 2017
There are plenty of reasons why you might want to explore investing in real estate in the new year.
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For example, there are a wide variety of tax benefits, better ways to increase your wealth, and improved rate of returns, compared to other investments.
However, below are our top three reasons why you should make 2018 the year you invest in real estate.
1. Real Estate Values Only Increase Over Time
Researchers have found that the longer you invest in real estate, the more money you can actually make. In fact, the housing market has shown to always recover from slip-ups and values have nearly always returned to normal for investors. In today’s economy, real estate investors are some of the highest performing investors in the market.
Not to mention, investing in real estate can help diversify your investment portfolio. This means that when you lower your risk in one investment, by spreading it out among investments. Some investors have claimed that the majority of their wealth came from investing solely in rental real estate.
2. It Comes With Tax Benefits
Investing in real estate can open you to tax deduction on property taxes, income from investment properties, and mortgage interest. For investors, the end of the year is an especially busy time trying to get the most of their tax benefits. However, there’s nothing better than getting money back by investing in a rental real estate.
3. High Value, Better Returns, Lower Risk
Additionally, real estate is a relatively safe investment. Firstly, it has a high asset value. Your land and your house will always have value. Other investments, however, may offer little or no tangible asset value. Stocks, for example, can fall and be worth nothing and cars depreciate in value year after year. Just remember to purchase homeowners insurance to protect your investment even further.
Real estate also offers a better return than other investments without as much of the risk or volatility. In real estate, the longer you keep your property, the lower your risk of loss is. When the market goes up, so does your home’s value. The end result is an increase in equity. In the stock market, there is always a risk. Any number of things can contribute to whether or not your stock increases in value. Many of these things are beyond your control. When you invest in real estate, you have more control over your investment. It appreciates in value all while giving you the opportunity to take advantage of multiple streams of revenue like rentals.
Conclusion
If you have money to invest, real estate is a fantastic option. Plus, you can take advantage of other opportunities to increase your income like transforming your property into a rental. Additionally, this investment comes with tax benefits, as well. Thanks to these three reasons, it is a smart move to invest in real estate in 2018.