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Under the right circumstances, investing in real estate can be an excellent alternative to stocks, as it can offer better returns, lower risks, and greater diversification.

Whether you’re planning to invest to earn residual income, save up for your college fund, or prepare for retirement, investing in real estate can be a great place to start, as long as you have a well-designed investment strategy that meets your budget and specific requirements.

In this page, we’ll take a look at some of the many reasons why investing in real estate is a smart choice.

Real estate is a tangible asset that will always have value

Unlike other investments such as stocks which can leave investors with little to zero value, there will always be value in a property. Real estate assets can also be protected in case of worst-case scenarios by homeowners’ insurance, so investors can get peace of mind provided they get the best policies available.

Real estate values increase over time

History has shown that the real estate market always recovers from past bubbles that have caused a drop in home appreciation. For those who kept their investments during unpredictable times, prices always returned to normal levels, and continue to appreciate over time.

Those who invest in real estate understand that it’s by no means a short term investment plan – they know their property’s value will be worth significantly more 20 or 30 years from now, which is why they’re in this investment for the long haul.

Tax benefits

Real estate investors who own a rental property get several tax exemptions, which is one of the primary reasons why many opt to invest in real estate in the first place.

Rental income isn’t subjected to self-employment tax, for example. Additionally, tax breaks are offered by the government for property insurance, legal fees, maintenance repairs, property taxes, and so on.

It’s improvable

One of the best advantages of investing in real estate is that it’s something that can be improved. Since it’s a tangible asset, its value can be increased through additions and renovations. Whether you’re performing cosmetic or structural improvements, doing everything yourself or hiring someone else to do the work for you, the principle remains the same, allowing you to increase your investment’s value as needed.

Covered mortgage payments

For those who own a rental property, tenants play a role in the benefits you get out of your investment. The rental income you receive every month will be more than enough to cover your monthly expenses, including mortgage payments, which means your tenant is essentially the one paying for your mortgage.

For this reason, it’s important to make sure your tenants are satisfied at all times, while avoiding the negative repercussions of vacancy at all costs.

Ready to start your search for the perfect investment property in Park City? Get in touch with Team Schlopy today by calling (435) 640-5660 or send an email to info@teamschlopy.com