Real Estate – Why You Need To Buy your Real Estate Property Now
Have been thinking of a buying an oceanfront or a waterfront mansion? Have you been considering buying that dream ten to twenty million home of yours but you have not been able to secure the needed financial capabilities? In case you have been dreaming of getting your dream home or property, be it oceanfront, waterfront, luxury suite, and so on, now is the right time to make that purchase.
Do you know that – As a result of the improving economy, and favorable government policies, some of these luxury properties have drastically reduced? This has made it possible for you to buy your exquisite condo at an affordable rate. Not only will you be purchasing your dream house at a relatively cheaper cost, it is also a great investment for the future.
Benefits of Real Estate Investment
In case you are the entrepreneurial-minded individual, you have been offered a wonderful opportunity to build wealth over the long-haul. Let us now take a look at some of the reasons why now seems to be the right time to invest in your real estate property.
Several individuals are of the habit of investing in real estate properties basically because of the cash flow. Even though we all have expenses, family commitments and obligations, however, it will still be an incredible idea to make good use of the extra money left after settling all bills.
The cash flow can serve as another source of monthly or annual income. The best part is that it is mostly passive. With this, you can concentrate more on your work or business, reinvesting in more real estate properties, or even traveling or going on vacations.
Moreover, a cash flow that comes from real estate investment is stable and highly predictable when compared with other businesses. This is great for any entrepreneur trying to endure all the fluctuations of start-up business life. Using the cash flow from your real estate home, you will be able to maneuver the bad times, and also live comfortably well all through the good times.
Do you know that government reward owners of rental properties? In case you do not, now you know. However, in what way? Very simple, reduced tax! Government policies have been laid down in such a way that real estate property owner enjoys lots of tax benefits.
For this reason, an individual earning $100,000 through real estate properties gets to save more, compared to another individual earning $100,000 from their personal business. The cash flow earned from your real estate home will not be subject to self-employment tax. Tax benefits such as depreciation and significantly lower tax rates are offered by the government for long-term profits.
The loan pay down
On purchasing your real estate property through a mortgage, your tenant will be responsible for taking care of the mortgage payment. Hence, your net worth will be increased every month. This is due to the fact that the loan pays down on a real estate property is basically a savings account which automatically keeps on growing. There won’t be any need for you to deposit money on monthly.
Any amount you owe today on your real estate home reduces as time goes on. This is because your tenant keeps on making payment on your behalf, making you richer in the process. A couple of decades into the futures, your mortgage will be totally settled. All thanks to your tenant taking care of the payment for the mortgage, you are now the sole owner of assets. You may later decide to sell or continue renting.
The major advantage that distinct real estate from other investment is appreciation. After making the down payment, and as you continue to pay up the loan, the value of your real estate home appreciates. Even though value can drop as a result of a recession, yet, the value will still go up over time. This is why it is advisable to buy your dream home now when you can get it at a relatively affordable rate. 30 years from now, one thing is certain, the value of your home or property worth more than the amount you purchased it today.
A hedge against inflation
Has it ever crossed your mind that there will be a time that a candy bar will cost five dollars, or a gallon of milk will go for ten dollars? This is one of the things we can expect as a result of inflation. Inflation can be referred to as a situation whereby prices of goods increase as a result of the decreasing value of money.
Even though most people are afraid of inflation, as a property owner, you need not to. When the prices go up, the same thing will happen to rents, and value of your property. Everything will rise. However, your fixed-rate mortgage payment will not be affected. As the cost of living continues to rise due to inflation, the cash flow on your real estate home will also increase. With this reason, real estate properties are often referred to as “a hedge against inflation.” Whenever inflation occurs, you are well prepared.
There you have it! All these are some of the reasons why you should consider investing in a real estate home, especially now when the cost of purchasing or mortgaging a real estate home is quite affordable. Not only will you be taking control of the situation, you will also be securing a financial future for yourself.
By looking for great deals, evaluating real estate investment, and also learning how to finance the property you are looking at buying, you will be able to get the best out of your real estate investment. Also, consider hiring a real estate agent. No one gets the job done better than a professional. Not only will the realtor save you the time and stress, but you are also guaranteed to get the best deal.