Here are three key benefits to using real estate as an investment vehicle.
If you haven’t invested in real estate yet, why not? There are so many great benefits to doing so. Here are my top three:
1. Cash flow. This is the measure of the income a property will generate after all expenses are covered. It’s monthly income you can use to pay your bills or put into other savings and investments.
2. Equity. This is the difference between the value of the property and the amount you owe on the mortgage. As renters pay rent, you’ll use that money to pay off your mortgage, and your loan balance will decrease. Real estate appreciates about 3% to 5% per year historically, although we’ve seen double-digit appreciation over the last few years.
3. Tax benefits. As an investor, you’re able to depreciate the value of that property over time to offset your active income. Many high-earning, self-employed individuals pay a lot in taxes. A way to shelter themselves is to purchase investment properties and use the IRS tax rules to depreciate those assets over time and offset their income tax burden.
“We’ve seen double-digit appreciation over the last few years.”
If you’re interested in exploring your investment options or just have any real estate-related questions, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
