Investing in real estate can be a great alternative to traditional investments and many owners choose to rent out their property or buy property to rent. Here are the top benefits for investing in real estate.
INCREASE OVER TIME– Money being put towards real estate investments has increased substantially over the past few years. This is due to an influx in demand of rental properties and an increase in rental rates. These continue to trend upwards, meaning your property’s value will continue to increase as well
SECURITY– Unlike investing in stocks, your investment growth is a lot steadier with a very minimal chance that you can lose it all overnight. Generally, experts can predict when the market will start to dip in advance, and you can adjust accordingly.
CREATE PASSIVE INCOME– Investing in a rental property can make you money while you sleep and the rent you collect can cover or exceed your mortgage payment and other expenses, allowing you to bring in extra cash flow.
TAX BREAKS– As a real estate investor, you can take advantage of several tax exemptions. Consult a Tax specialist but having a LLC with property yields tax breaks that can help offset your costs. Rental income is not subject to self employment tax and government provides tax breaks on insurance, repairs, legal fees and property taxes.
INFLATION– Although normally a bad thing, people who own rental properties actually benefit from inflation because, as the cost of living increases, so does your income.
FLEXIBILITY TO SELL– Renting out a home allows the homeowner the opportunity to be selective about when and if they sell while the home is still appreciating. Once the market is in the right place and the lease is up, they can pull the trigger.
Looking for a good investment? Rental properties in Florida are a great option!
If you’re looking for ways to secure your future, build an asset, mitigate your tax burden and secure a passive income stream now or at retirement, i can help.
If you have any questions, text or call me to discuss your options.
Re/Max Prime Properties
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