Want to benefit from a steady flow of income without limiting your financial freedom? Invest in real estate. All you need to set up your real estate business is a rental property at a great location. Keep it top condition, build rapport with your tenants (optional), and you have yourself a reliable source of revenue.
Not up for the duties and responsibilities of being a landlord? There are other ways to invest in real estate. You can engage in house hacking, flipping houses, taking part in a property crowdfunding opportunity, becoming a lender, and more.
Aside from a steady income, real estate investing in any form also comes with these fantastic advantages, such as:
This is a by-product of real estate investing’s primary benefit: steady cash flow. When income is consistent, long-term financial security typically follows. One of the easiest ways to reap this benefit is by owning a rental property. Not only will you get revenue from your tenants, but you can also rely on the property’s appreciation in value over time. (See Related: 5 Worst Retirement Mistakes You Should Avoid at All Costs)
The benefits of real estate investing are tied closely with inflation. Most investors welcome inflation because it causes the cost of living to increase, which translates to better cash flow. The property value also rises alongside inflation.
Tax benefits are one of the most common reasons why most investors focus on real estate. (See Related: Top 9 Tax Saving Tips for Businesses)
Rental properties enjoy various tax exemptions. For instance, the self-employment tax is not applied to rental revenue. Real estate investors also benefit from lower tax rates when it comes to long-term investments. On top of these, the government provides tax breaks for mortgage interest, insurance, legal fees, property depreciation, maintenance repairs, and property taxes.
Whether you’re new to the industry or have been investing in properties for several years, you know that real estate is designed for long-term financial plans. Besides providing a steady income, it also offers the appreciation of capital assets over time. This includes your property’s land. A decade or more from now, its value can potentially increase several times. You can sell it or continue renting it out; either way, you have the potential to earn more than you could have at the beginning of your venture.
In real estate investing, you have full control over your ventures. No one can dictate which properties you should invest in, what strategies you should use, and how many hours of work you should put in. You also call the shots on who will manage your property and how much rental income to charge each month. However, if you’re new to the industry, it would be best to consult with an expert before closing any deals.
The advantages of real estate investing are limited only by your own potential, so get started now. The sooner your investment takes off, the longer you’ll enjoy these benefits, and the better your portfolio will be.
Not comfortable with starting your business on your own? Consult with established real estate agents in your area. Be transparent with your financial goals and preferred investing options. Let them guide you to real estate investment success!
Tycoono, LLC and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial and accounting advisors before engaging in any transaction. Please refer to our disclaimer for more information.