What Makes Real Estate a Great Investment

Real estate is a popular way to invest and grow your investment portfolio. While the real estate market is usually on the rise, there are times when property values plummet as well. As with any investment, there are risks and rewards.

As you learn more about investing in real estate, think about the possibilities of investing in a home for yourself, buying some short-term rental properties, and owning real estate across the country. Of course, there are no limits to how much property you can own. Let’s take a closer look at what makes real estate an excellent investment.

You may be currently renting and looking to enter the real estate market or own a home and are searching for a second property. You aren’t the only one looking to dip your toes into real estate investments. The more you learn about the process and benefits of real estate investments, the more you will be able to find your niche and run with it.

Take a look at why real estate is a good investment:

1. Choose How to Invest: You can choose how involved you want to be with your real estate investments. Maybe you want to buy a piece of land and leave it alone for 20 years without doing anything to maintain it. On the other hand, you may buy a fixer-upper and do many renovations yourself to save even more money. Another way to invest is to buy a duplex or four-plex and live in one of the units while renting out the rest and collecting a monthly return. Decide if you want to buy and hold real estate or if the landlord life is right for you.

2. Receive Tax Benefits: When you use your real estate property as a business for short-term or long-term rentals, you can write off many of your expenses on your taxes. A tax professional should approve these expenses but know that you can seek tax benefits for your income-generating real estate property.

3. Build Generational Wealth: Passing down real estate assets is the same as passing down a business. Those closest to you can take over the real estate holdings, choose to keep them and glean from the appreciation. Or they can sell the property and cash in on its value.

4. Create a Monthly Income: Another great thing about real estate investments is generating a monthly income through rentals. This income can cover the monthly mortgage for your property plus maintenance costs. Real estate is an investment that can show a return immediately.

When you invest in real estate, you have endless possibilities for making money for yourself. While there is a risk with every investment, a trusted real estate team will guide you away from bad investments and help find you profitable properties. Meet with an experienced team to share your ideas and start your real estate investment journey today.