Financial independence is the dream of every human being. Though there are many ways to fulfill this dream, what would be a better way to do so other than investing in real estate?
So, let us skip any further introduction and dive straight into the reasons why real estate is the ultimate financial independence path!
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First: Money, money money!
Well, money, of course, is the most obvious reason for investing in real estate. Real estate investing is one of the most lucrative businesses there are if well managed. Therefore, what you have to do is to get educated on running a real estate investing business. Then you get to choose your real estate investment strategy after, of course, setting your financing plan. Once you have bought your first investment property, all you have got to do is keep the ball rolling. When your first investment attempt succeeds, you will have to go through the same cycle again. This is called growing your real estate investment business, which is the key to becoming a millionaire and achieving financial independence.
Second: A variety of real estate investment strategies that guarantee financial independence
When investing in real estate, you can enjoy the variety of investment strategies available for you. You get to choose whatever real estate investment strategy you feel confident with. You can choose to take the path of long-term investments such as buy and holds and traditional rentals. Moreover, you can also choose to take the path of short-term investments such as fix and flips.
There is really no limit to what you can do with real estate investments, keeping in mind that the real estate investing business is becoming more advanced over the years. Now, you can even go with creative investing. One of the methods you can go about creative investing is house hacking. Basically, you get a mortgage, buy a property and live in it while renting it. In this case, the rent is going to take care of your mortgage payments.
We, at Mashvisor, think that as a beginner real estate investor, you should go with basic strategies, such as traditional rentals and house hacking. They are guaranteed to have fewer risks. They are also easier to finance. You can easily apply for a loan to finance your rental property. You can benefit from owner-financing as well as a regular loan which will be taken care of with the rent.
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Third: Property appreciation
It is a given that any real estate property will rise up in value over time. So, why not take advantage of that in your real estate investing business? Start by buying your investment properties and then all you have to do is hold on to them. Meanwhile, you can enjoy a monthly stable rental income by renting out your properties.
Fourth: Tax benefits
Well, this part is some real estate investors’ favorite! What could be a better thing than having the opportunity to claim your expenses back?! They could be loan expenses or any other expenses which have gone towards maintaining your rental property. No wonder so many real estate investors have had their financial independence dream come true!
Fifth: Secure a retirement plan
The thing that most people are concerned about is retirement. With real estate investing, however, you will not have to worry about securing your retirement years. For most real estate investors, it is the ultimate strategy for financial independence when it comes to retirement planning. Taking into consideration its benefits which are perfect to suit anybody’s goals, it only makes sense to plan a retirement through real estate.
Since everybody is dreaming of financial independence, real estate investing is the way to fulfill this dream. A huge part of real estate investing is the cash flow. When investing in a property, you should only look for positive cash flow properties. Otherwise, a negative cash flow property will cost you your own money.
Tax benefits are another advantage that comes with real estate as a retirement planning strategy. If a real estate investor owns a rental property, he/she becomes eligible for different tax deductions. They are mostly applied to rental property expenses as well as damages and depreciation.
Well, it is good news that real estate investors get to benefit from the cash flow. However, it is even better news to know that cash flow is not everything in real estate investing. Besides making money in the short term, a real estate investor benefits in the long term as well. This long-term benefit is due to appreciation. In other words, the investment property goes up in market value over time. Therefore, when you sell your investment property, you know you will make some good money out of it.
Related: Learn How to Find Positive Geared Properties in the Real Estate Market
Finally: Extra income also means financial independence
An extra income never hurt anybody! The good thing about real estate investing is that you can get into it to make extra income. This means that you can invest in real estate part time while keeping your own career. All you have to do is buy a rental property, hire a professional property management company, and enjoy your monthly rental income along with your paycheck, thus enjoying your dream of financial independence.
Another option is passive investing. This means that you invest your money in REITs (Real Estate Investment Trusts). You put your money out there, and the REIT will do all the work from there. Therefore, you get to enjoy a rental income while working on your own career.
Moreover, you can use real estate partnerships as a passive investment strategy. This is, in fact, a great way to reach the level of wealth and financial independence you desire. Basically, if you have the money to invest, you can find a real estate partner who has the knowledge and the deals to start the business. Make sure your real estate partner is willing to operate full time in this business, or you can both hire an investment management firm to do the work for you.
To learn more about real estate investing, sign up for Mashvisor and start your investing journey with us.