Did you know that the average rent increased 2.6% in 2020 and continues to go up? And with 35% of people living in a rented home, this is good news for anyone looking to invest in buying property.
If you thinking about purchasing a house or building, you should know that making money is just one of the benefits of real estate investing.
Read on to discover 5 reasons why you should invest in property this year.
1. Guaranteed Flow of Income
The best real estate investment is one that offers you a passive income. So, if you plan on renting your property you can do just that.
Using a property management company in Charlotte, North Carolina, can help you by finding the best tenants, assisting with rent collections, handling maintenance issues, and even managing your finances. This makes it easy to have a steady flow of cash deposited in your bank without being actively involved unless you want to.
2. Become Your Own Boss
When you start real estate investing you can quit your day job if you choose to because you now have taken your salary into your own hands.
You also obtain the freedom to use your property and your ROI for passions that you had no time or capital to invest in before. Plus, the control to lease your property or use your building however you choose allows you to open businesses or help people in need of a home.
3. Diversify Your Investments
A real estate investment portfolio, especially when owning multiple properties, safeguards your finances. If you have an economic fallout with one form of income then you always have your properties to keep you from going bankrupt.
This may save you from having to lose an opportunity in another investment because you are continuously making a profit even when you acquire a loss.
4. Real Estate Tax Breaks
When you manage a real estate investment like a business then you have more tax deductions than if you were just living on your property.
When you are active in managing your property by spending at least 750 hours a year interacting with the property/tenant then you get the most tax breaks including:
- Passive Losses
- Mortgage Interest
- Property Depreciation
- Maintenance and Repairs
- Property Tax
- Travel Expenses
It is important to keep thorough records of your rental property to itemize your deductions properly.
5. Leveraging Asset
Another great benefit of a real estate investment property is that it can be used as a tangible asset. You can use it as leverage to make other investments, which will only increase as your equity appreciates.
Plus, your property will most likely continue to appreciate as you make other investments that will also continue to go up in value. The long-term result is that you will always be making more money.
Getting Started with Real Estate Investing
Now that you know the benefits of real estate investing you can begin your search for the perfect property. And when you find your investment opportunity be sure to turn to a professional to help you get started with all your property rental needs.
Contact us today to learn more about how we can help you transform your new property into a worthwhile investment.