Here’s Why Real Estate Is The Best Investment
When you look at financially successful (aka rich) people and their portfolios, what is something they have in common?
Stocks? Check. Luxury vehicles? To be expected. Real estate? Definitely.
Thankfully, real estate investment is not just for rich people. In fact, with proper guidance, the right timing, and favorable market conditions, it can be a great way to grow your own wealth.
Here are the top three reasons why real estate is the best investment.
- Build equity. When you invest in real estate and pay property mortgage, you also build equity. Equity refers to the current market value of your home (minus what you still owe on the loan). Your home’s equity is an asset that becomes part of your net worth. When you have equity, you have the leverage to invest in more properties or increase your cash flow.
- Tax breaks. In Florida, there is no distinct tax on businesses owned by single individuals or sole proprietorships. There is also no individual income tax. This means you can invest in property without paying state income tax.
- Cash flow and appreciation. Cash flow refers to the net income from your real estate investment after loan payments and other expenses have been deducted. Over time, as you pay off your mortgage and build up equity, you can generate long-term cash flow.
Generally, real estate value increases over time, especially if you’ve chosen a strategic location. Should you decide to sell in the future, you can turn a considerable profit.
Real Estate Investing 101: Tips On How To Invest In Real Estate
- Find a strategic location. It’s been said many times, but it bears repeating location is key. Real estate is a long-term investment and the last thing you want is to be stuck in an area that is stagnant. When you look at a property, consider the lifestyle factors. Are there good schools nearby? What amenities are available? What about access to public transport or major thoroughfares? What’s the crime rate in the area? If you’d want to live there yourself, that’s a good start.
- Be ready for new responsibilities. If you’re set on becoming a rental property owner, you must be prepared to take on the associated responsibilities. Managing the financial aspect is just one of the many things you’ll need to do. For instance, you will need to be on top of maintenance, and it’s important to work with a professional team of handymen and contractors. In some cases, owners who know their way around a toolbox opt to do the job themselves to save money. When it comes to maintenance, always remember that it’s more prudent to nip it in the bud.
- Do not hesitate to ask for professional help. Especially if you are a first-timer. It “takes a village” to find and grow the best real estate investment. Even if you don’t need them just yet, have a list of go-to professionals – realtor, accountant, plumber, electrician, to name a few - that you’ve already researched and vetted.
Ready To Dive Into Florida Real Estate Investment?
The Corcoran Connection is a Saint Cloud, FL real estate agency that specializes in helping buyers and sellers in Central Florida.
Jeanine Corcoran and her team also work with clients in Harmony, Lake Nona, Kissimmee, and of course, Orlando. With years of experience under their belt and a track record of impeccable customer service, they can guide potential investors on the best way to invest in real estate.
Check out their official YouTube channel for free expert insights or better yet, call 407-953-9118 to organize a personalized consultation.