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4 Reasons to Invest in Real Estate Right Now

19.04.21 07:53 PM

Introduction

Real estate is a huge market with a lot of opportunities. Though some might argue that it is currently in a "bubble" and will soon burst, these dire statements ignore the cyclical nature of the real estate market and the basic fact that homes, apartments, and other buildings will always be needed. "That's true," you might say, "but if I want to get in on this action why should I do it right now?" It's a fair question - after all, who wants to rush into something before they weigh all their options. 

If you’ve been sitting on the sidelines, researching whether now is a good time to invest in real estate, then this post is for you. Here are 4 reasons you should be getting your real estate property right now.


Owning a home has always been the American dream

Millions of Americans dream about owning a home. They see it as the ultimate investment opportunity. In fact, according to a study by CoreLogic, 93% of homes in America were either owned or undergirded in some way (their income and wealth status doesn't matter) in 2015. The argument can even be made that real estate is becoming the “investment of choice” in America. It’s not surprising since owning an asset usually gives you the freedom to do things with your time and money that not owning an asset would prevent you from doing. Anyone who has a chance to own their own home will tell you it’s one of the best financial decisions you can make and America offers many paths for individuals to implement real estate strategies if they so choose. 


You can start with as little as $500

Even if you have $500 to invest, it's still wise to start small and gradually grow your investment so that your $500 investment is profitable. Many people think real estate is only for rich people. Think again. Real estate can be an excellent investment, and if you know where to look, you can purchase a valuable piece for $500. In fact, many real estate investment companies offer special low-price packages that include cash, tax incentives, or other incentives that can bring your investment up to hundreds of dollars per parcel. 


Real estate is one of the few investments that can produce a positive cash flow

It does not matter if you are a young professional or an elderly retiree, real estate can serve as a good long-term investment that will positively impact your life. It can be extremely rewarding, whether you grow your money through an increased sale value or through higher rents or capital gains. Real estate is not a particularly risky investment for the average person. Despite the fact that it is speculative and has a high potential for profit, it also has many positive characteristics that make it a great investment opportunity. Real estate can produce good returns for investors at all price points. This makes owning real estate a good investment for anyone with disposable income who wants to diversify their investments and ensure that their money does not sit idle. Why? Because real estate is a highly liquid investment, meaning investors can buy and sell properties with ease which gives them access to funds even in times of tight budgets.


Income from real estate investment is considered passive income

You can put this in a number of ways, but essentially passive income is the kind of cash flow you get from money or assets that you own that you do not pay tax on. Typically this type of income is taxed at very low tax rates and is very lucrative. You can receive passive income from a rental property. In addition, a lot of sources of income for real estate investment (such as capital gains, rent discounts, etc.) are considered passive income as well. Altogether this means that you can earn passive income from real estate investments without having to do much at all. Many real estate investors, even people who plan to live in their properties, will enjoy the passive income that comes from property ownership. Real estate investment has some unique advantages over other types of investment such as solid foundations, liquidity, and tax advantages. Real estate can also provide a useful tool for those looking to get out of debt and build financial strength. 


Conclusion

Investing in real estate may seem like a difficult way to create wealth. The amount of work required to find, buy, and sell homes can be daunting. But it doesn’t have to be. By getting a real estate coach you will understand the fundamentals of investing and avoid common pitfalls like losing your hard-earned money wasting real estate opportunities. Get in touch with us today to kickstart your real estate journey!