AUGUSTA, Maine — Maine experienced positive growth and set new records in the single-family existing homes real estate sector last year. According to Maine

What is the best thing to invest in right now?

The best thing to invest in right now is definitely real estate! Investing in a real estate property offers many benefits. Why do you think so many people are attracted to the world of real estate investing! The main benefits of buying a real estate investment property are:

1. Cash Flow/Return on Investment

Real estate investment properties provide a real estate investor with a guaranteed and steady source of cash in the form of monthly rent. In addition, as a real estate investor, you can always find tips to boost the rental income from your investment property, thus generating a positive cash flow and a better return on investment (ROI). The key, of course, is buying the right rental properties.

Click here to start your search for the best real estate property to invest in across the US!

The stable monthly income from buying a rental property makes it a lot easier for property investors to operate their finances and plan ahead of time because they know what they’re making and when they’re receiving it.

2. Hedge against Inflation

Investing in real estate can be a potential hedge against inflation as historically cash flow and rental rates have kept pace with inflation. What this means is that market prices for real estate rental properties rise automatically as the cost of living also increases. This is beneficial for a real estate investor for three main reasons:

  • Property investors can raise the amount of rent they charge as inflation increases.
  • The value of the rental property will go up enough to cover for inflation.
  • Mortgage payments are not affected by inflation, thus they actually decrease as inflation increases.

Therefore, when investing in a real estate property, inflation will be on your side!

3. Fewer Risks

In general, buying a real estate investment property has fewer risks than other types of investments, such as stocks for example, especially if you’re investing in real estate for the long term – the longer you hold investment properties, the fewer risks of loss you have as equity and home prices build and rise over time. In addition, the more real estate properties a real estate investor buys, the fewer associated risks he/she faces, unlike the stock market where risks typically stay the same.

Related: 10 Risks of Real Estate Investing and How to Reduce Them

4. Leverage to Build Wealth

Leverage is a tool that real estate investors can use to build their portfolio of investment properties. When you get a mortgage for buying a real estate property, you’ll have leverage that you can use to invest in more real estate properties with less money down!

Most loans require 20% of the property purchase price as down payment, while the bank finances the other 80%. Let’s say you put 20% down for the purchase of a $100,000 investment property. You only have to pay $20,000 now, and you have the next 15-20 (or even more) years to pay the remaining $80,000 plus interest.

When financing the purchase of a rental property in this way, real estate investors have the opportunity to buy several investment properties with little money down and increase their rental income (which pays all their costs such as mortgage, taxes, maintenance, management, etc.). This is another benefit of real estate investing.

5. Ability to Buy Low and Sell High

In the real estate investing business, there are a number of strategies where real estate investors can buy low and sell high almost regularly, such as the fix-and-flip strategy. When following this investment strategy, property investors are basically buying an investment property that is on the market for a cheap price because it needs renovation or for being a foreclosure, they renovate and then sell them for a higher price that covers the purchase price, the costs of renovations, and a profit margin. It’s possible for a real estate investor to repeat this process over the course of his/her real estate investing career as there will always be cheap investment properties for sale.

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6. Tax Benefits

Buying an investment property will require you to pay property taxes. However, there are certain tax benefits provided only to real estate investors. For example, your cash flow is tax-free, and your property taxes, mortgage interest, operation expenses, and insurance are all tax deductible. Exactly how much a real estate investor can deduct depends on the rental income.

Related: What You Need to Know About Real Estate Taxes as an Investor

You can definitely see the many benefits of investing in a real estate property which you don’t enjoy when investing in other types of investments, like the stock market. Head over to Mashvisor to start searching for investment properties for sale across the U.S housing market, and visit Mashvisor’s blogs for more information on anything real estate!