Without a doubt in mind, there are many good reasons to invest in real estate today and if you are still contemplating whether or not to become a real estate investor this year, we tell you to hurry up now. Smart investing requires a thorough real estate market analysis as well as investment property analysis first and foremost. With that said, however, you do not have to be a real estate expert to start investing and buying investment properties. All it takes is the right level of real estate knowledge, time, and financial resources to turn your investment properties into a money making real estate business. Below are the top reasons why you should invest in real estate right this second.
Top 8 Reasons To Invest In Real Estate This Year
1. Strong economic indicators
2017 is looking sunny side up for all you novice and expert real estate investors out there. It is a simple equation: if the economy is growing, the housing market will also experience positive repercussions and strong growth in turn. As we power through the last 6 months of the year, the US GDP growth is set to increase to 2.1% by the end of the year, while the unemployment rate is expected to drop to 4.5% in 2017 and beyond. This year, we expect more people to sell houses, buy houses, and get more mortgage loans. Long story short, this is a great time to buy your first rental property and delve into real estate investing. Not only is real estate a safe investment option, but it is financially rewarding for the long haul.
2. Easier to get a mortgage
One of the main reasons to invest in real estate this year is due to the lenient credit qualifications available for borrowers and the low interest rates. This means that more people are taking out loans to finance their investment properties, whether it is a condo, a single family home, or a multi family home. Real estate investors are taking advantage of this perk and investing heavily in the housing market left and right. The competition is strong, but you have a good chance of getting approved for a loan and kicking starting your real estate business today. If you are already house hunting, head over to Mashvisor to find the best rental property with a good cap rate and a desired cash on cash return in any neighborhood of choice.
Appreciation is amongst the many reasons to invest in real estate right now because it is one of the safest investment options out there. Why, you might ask? Simply put, real estate is a long term investment strategy because your rental properties increase in value over time, given a prime location and a growing economy. In other words, your house bought right now will be selling for a lot more in 20 or 30 years down the line. Not only do you receive rental income every month, but you will be earning a good profit when you sell the house in the long run.
4. Tax benefits
One of the many good reasons to invest in real estate right now is due to the tax advantages you receive as an investor. Why? Because real estate is a business, and any business owner/entrepreneur/investor out there gets tax exemptions and benefits for owning and running a business. Investors owning a rental property can write off the interest rate charged on the mortgage as well as write off depreciation, expenses, and maintenance repairs associated with the investment property. It goes without saying how important it is to hire the right accountant to help you get more tax exemptions and save you money along the way.
5. A steady flow of income
With rental property, not only are you becoming your own boss, but you are also earning a steady flow of rental income every month. This steady flow of cash every month is passive income and one of the best reasons to invest in real estate today. If you get the right tenants, you can secure a steady flow of cash for a long time and avoid the risk of vacancy. Nevertheless, always underestimate your rental income and overestimate your expenses when owning rental properties. And don’t forget, your rental income is helping you pay down your mortgage payments. Win-win!
6. Financial freedom in the long run
One of the reasons to invest in real estate today is the accumulation of wealth and great returns you earn from long term investments. In tandem with the previous tip, owning rental properties is passive income for the long haul in the most ideal case, i.e., no vacant units. Whether you want to save up for retirement or secure an extra income on the side, investing in real estate is the answer to gaining financial freedom for years on end.
Financial security is among the many good reasons to invest in real estate right now. In a nutshell, real estate offers investors financial security for many years down the line. This is pretty intuitive because when you own a tangible asset that is bound to appreciate in value over time, you have the financial security to sell it for a lot more than its original price. If you need cash, you can sell the property. But if you don’t, you are still earning passive income from the current tenants who are also helping you pay down the mortgage. There is security in buying real estate, which makes it a lucrative business for many people.
8. More foreclosed homes
Home foreclosures are among the top reasons to invest in real estate right now. There is an influx of foreclosures this year and real estate investors are in fierce competition over buying profitable properties at a bargain. These affordable homes are selling below their actual market value and are located in the most prime locations across the country. This is the beauty of real estate – finding lucrative properties at a discount and selling them at a large profit years down the line. Homes in prime locations are also in constant high rental demand and landlords are reaping the benefits indeed!
There are many reasons to invest in real estate this year and you can be reaping the financial benefits in no time if you start today. If the above reasons were not enough of an incentive, check out the Mashvisor blog to read up on more real estate topics and advice. Real estate investing starts with the right knowledge and resources.