29% of Americans claimed that real estate is their top pick for long-term investments. This puts real estate above stocks, bonds, and traditional cash savings. So, if you’re looking to put your money towards a secure future, real estate is one of the best ways to do it.
However, real estate is a competitive market, like any other investment. If you’re new to investing, it’s best to understand your goals in doing so. Done right, you can build wealth and achieve your financial goals.
So, is it worth your time and money? Here are some reasons why you should invest in real estate.
Reliable Long-term Investment
Real estate is the most stable asset you can invest in. Stocks and crypto are prone to volatility and overnight shifts. Real estate markets have periodic fluctuations, but they are still more stable and predictable.
That’s why real estate is popular for long-term investments. It can also serve as a safety net for higher-risk investments that you may have on the side.
Appreciation
The beautiful thing about real estate is that your property’s value will increase over time. Median housing prices in the US have appreciated by over 160%. If you buy a home now, imagine how much more it would be worth in five or even ten years.
Annual appreciation rates can range between 2-8% depending on the location. If you’re looking to maximize your investment, find properties in urban areas with an increasing population.
Tax Benefits
Real estate investors can take advantage of various tax benefits. With rental property depreciation, you can lower your taxable income or exclude yourself from the equation. You can even write off costs associated with mortgage interest, property tax, and more.
This allows you to maximize your tax savings. This part of real estate investing requires some careful research and planning. However, all that will be worth it, especially if you keep good accounting records on your property.
Variety of Investment Options
With crypto, you have limited options with what you can do. There are investment strategies, sure, but they don’t offer the same level of freedom that real estate can. Once you purchase a property, it is yours forever – at least until you decide to sell it.
In addition, you have total control over your investment. You can dip a toe in the rental property market or hold it until it reaches a high enough appreciation value, then sell it.
Are you looking to earn passive income? Work with experts in enterprise property management.
Benefits the Community
Investing in residential real estate may seem like a personal venture, and there’s nothing wrong with that. However, you can also help people along the way by providing housing.
This also gives you a great opportunity to build your network. As a residential property investor, you have to involve yourself with the local community. This puts you in touch with contractors, tenants, and even home sellers.
Start Investing in Real Estate Today
Now you know the benefits of investing in real estate. Real estate is the safest investment you can make. You’re free to do whatever you want with it, whether you want to turn it into a rental property or sell it in the future.
Are you looking for more real estate tips? Check out our other blog posts to learn about home rental prices and more.
