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! 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 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.
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The stable monthly income frommakes 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
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: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
- Property investors can raise the amount of rent they charge as inflation increases.
- The up enough to cover for inflation. will go
- Mortgage payments are not affected by inflation, thus they actually decrease as inflation increases.
Therefore, when, 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 , 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.
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 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 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 .in this way,
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 . 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 , 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 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.
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 to start searching for investment properties for sale across the U.S housing market, and visit for more information on anything real estate!