Why Invest in Real Estate is one of the most popular questions youll hear in the news today. As we have experienced an extreme downturn in our economy, many homeowners have been forced into foreclosure. The job loss rate has skyrocketed and many are trying to make it off of unemployment alone. This is scary for most Americans who are on the brink of financial destruction. Most people dont believe that there is a way out of this crisis but there is. If investing in Real Estate has not crossed your mind just yet, take some time and think about what becoming an entrepreneur would mean. Becoming an entrepreneur would mean attaining business and working that business so that you can become financially dependent on it. Real Estate can sell itself in most cases but you still have to put in the hard work, so that others will know that you are serious about buying and selling a property. Real Estate is not only a business but a way of life for many. If you turn on the television, youll find a ton of fix and flip shows. You get excited at watching different homeowners buy, fix and flip their properties for profit. But the only thing is that you are on the opposite side of the tube! This should be you!
There are a ton of reasons to invest in Real Estate but maintaining financial wealth and prosperity is definitely a great reason that comes to mind. Unfortunately, the foreclosure crisis has been hurtful to many but it has been a goldmine for Real Estate investors everywhere.
A few other reasons to invest ..
Appreciation – Rental properties normally appreciate in value with inflation. Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments. This is the second and a historically proven value component of real estate investment return.
Inflation can be Rent-Friendly –
Rents usually increase with inflation, while mortgage payments on the property remain stable. This increases cash flow, with more rent income without increased expense for holding the property. When inflation is up, it can also mean more renters, as the affordability of homes can be negatively impacted by inflation. More renters increase demand, so rents can escalate.
Leverage – Using leverage, while being careful to buy properties with good rental yields, provides greater returns.
Using $100,000 to purchase three properties with down payments, instead of one for $100,000 cash will greatly increase returns. And much more! If you have access to a computer or read the newspaper, you can see that Real Estate properties are all over and they are going fast!
Queen of Real Estate