5 Reasons to Invest in Real Estate
There has never been a better time to invest in real estate than 2018. You can make some outstanding long-term returns by investing the right way.
And in 2018 the right way is to invest in real estate. Investing in real estate doesn’t necessarily mean actually buying property.
Of course that is the most common way, but you can also invest in a company that is focused on real estate, or you can invest in home construction.
No matter what route you take, you are investing in the real estate market and you will see the benefits of that if you do it the right way.
Here’s five reasons why you should think about investing in real estate right now.
- Interest Rates are Extremely Low
Interest rates in the United States in particular have been on the decline for many years now and at the lowest they’ve ever been in 2018.
If you’re investing in real estate the conventional way, this means that you will have to buy some property and unless you’ve got a ton of cash to spare, that means a mortgage.
In 2018 you could get a mortgage with an interest rate as low as 4%. This is pretty crazy and it also might not last forever.
These things can be predicted but sometimes things change on the fly, completely unexpectedly and a window of opportunity could disappear.
If you have low monthly repayments then you won’t have to worry as much about that and can get more out of this investment. So jump on this while you can.
- There’s a Lack of Supply of Homes
This doesn’t sound like a good thing, but let me explain to you why this will be beneficial for those who invest in real estate in 2018.
The demand for homes is high, but the supply is low, which means that the value of homes is higher than usual.
Despite a recent increase in the construction industry, it is heavily outpaced by the ever-increasing demand for homes.
So what this means for you as a potential property owner, is that you are pretty much always guaranteed tenants.
Much like the trend of low interest rates, this is not going to last forever and for all we know this could all be over in the next couple of years.
So once again, get on this while you can.
- Investing is Easy Thanks to Technology
Technology is advancing at a pretty alarming rate. It always sort of has been but the pace at which it advances is increasing too.
Investing as a whole has changed as a consequence of this and you could argue that that is for the better.
Just look at how different things are with the rise of Artificial Intelligence. If you are tech-savvy you can use things like this to your advantage.
While you used to have to be on the go constantly and painstakingly analyzing documents to effectively invest in real estate, now you can do a lot from home.
You can advertise housing online on places like Craigslist, you can order any kind of cleaning service or handyman you need online.
You don’t have to collect your rent in person, it can be done through a standing order online and you can even check out the layout of an area beforehand by looking at Google Street View.
The efficiency of real estate investing is increased and you can rely on technology a lot more for your own progression.
- You’ll Have a Stable Income Return
One thing that you can’t always rely on when you’re making investments is a consistent income return.
The reason for this is because you’re investments are sort of reliant on the stocks themselves and when you choose to sell them.
Of course, you could always look for shares that will pay out monthly dividends which will result in a monthly income return.
But in the case of real estate investments you don’t even need to look for high-dividend yielding shares because you will get a steady rental income regardless.
Shares that rely on income return such as real estate investments tend to be less volatile than the ones that rely on capital value return.
So if you want stability out of your investments than the place to look is in real estate.
- There’s Major Tax Benefits
No matter where your money is coming from, you almost certainly have to pay a certain amount of taxes on it.
Because you’re spending so much to actually get into the real estate investing game, these tax benefits are essential.
The main tax benefits of real estate investing come from depreciation and from cost segregation.
Deduction is another big thing here. You can deduct any expenses required to keep the house in check from your taxes.
And this isn’t even really scratching the surface of the benefits.
Conclusion
As we’ve said a couple of times already, it’s possible that some of these reasons won’t be good reasons to invest in the next couple of years.
So 2018 is the time for it. Jump on it right now and you will see all of the positive results.
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