I often times get asked, “what are the benefits to investing in real estate property?” Many people are hesitant to do so because they are unsure as to whether they should invest in stocks, put their money into savings, or invest in a rental property. Once you look at the numbers, risks, and potential rewards the easy answer is real estate investment. The first and one of the biggest reasons that people choose to invest in real estate is the tax benefits that come along with owning property. Tax benefits in real estate can include depreciation, business expense deductions, and tax deferred exchanges. In other words the government allows you to keep more of the money you make from your rental property and minimizes your taxable income. Another big benefit to investing in real estate is the monthly cash flow. Somewhat similar to a stock that pays a monthly dividend this cash flow can be your monthly income. Last but not least one of the most promising aspects of investing in real estate is the potential for appreciation. Appreciation is the increased value to something over time and in this case can occur due to inflation, supply and demand, or capitol improvement. Whatever the reasoning, appreciation to your property can mean a much bigger payout if you choose to sell or refinance.
This is just a short overview of the advantages of investing in real estate. If you are considering purchasing an investment property or would like more information on the subject please feel free to contact me! I look forward to hearing from you.