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There are some investments that sound too good to be true and others that provide the financial returns that exceed yourexpectations. There are many advantages to investing in real estate compared to other types of investing that you might encounter on your path to finding a way to grow your net worth. Real estate offers you one of the easiest investments to make without the high risk that other investments can pose to your finances. The knowledge that you gain in real estate investing can be used in other markets to strengthen your investing skills.
What Makes Real Estate a Good Investment
Stocks and bonds are popular investments that many people own. You receive a nice piece of paper and recognition as a shareholder. When you purchase real estate, you get to own the property and are responsible for the way it looks and performs. Investing in rental properties makes you the landlord and tenants are grateful that you are assisting them with their housing needs. The personal satisfaction that investing in real estate will give you has little to do with the profits that you earn.
There are few investments that have achieved continuous growth year after year like real estate. One reason for this is that every person on the planet needs housing to survive. People can live without investing in companies that sell products that are not necessary for daily survival. Banks and finance companies receive a large portion of their profits from issuing loans to help people buy real estate not stocks or bonds. Annual returns on real estate in an average market are usually 15 percent or more.
Additional advantages to real estate rental property investing:
• You own the property
• You can write off repair expenses
• You will receive tax breaks
• Monthly cash flow is guaranteed
• Real estate can be sold later for higher profits
• Property managers handle tenants and rent collection
Now is the Time to Invest
The struggles in housing market sales have not hurt rental property investors. The low interest rates attached to loans makes seeking alternative financing a cost effective solution compared to previous years. A rental property that is located in a growing neighborhood will likely never sit vacated. Rental properties never stay on the open market for more than a month. The affordable investment cost offers immediate cash returns that can be used to recoup invested monies instead of waiting for quarterly or annual dividends on stocks and bonds. Some of the most successful real estate success stories started with rental properties.
You might have heard about the actual cost of a home and believe that you cannot afford to make a purchase. One thing that sets the rental property market apart is the ability to have more than person come together to complete the purchase. It is not uncommon for friends, family members or new acquaintances to form a partnership together to take advantage of the low investment required for each person to complete a rental property purchase.