You might already know of some of the benefits of investing in real estate, but did you know there were so many!? Take a look at the benefits we've outlined below, these are the reasons we're are passionate about sharing real estate with as many people as possible.
HIGH RETURNS
There are 3 ways that rentals provide you with a return on your investment
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CASHFLOW
When you rent a house, you receive rent each month. With this rent, you can pay for all your expenses and ideally have an amount left over. This leftover amount is called cashflow. This money is yours to keep, it is effectively income paid to you by your property, often referred to as passive income.
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APPRECIATIONAs a general rule of thumb, properties increase in value year after year.This is not always the case, however, the vast majority of the time, you can expect that your property will have a nice bump in value each year. This is one of the ways a rental property generates a return on your investment. |
MORTGAGE PAYDOWN
When renting out your property, you will receive monthly rent. This rent will be used to make your mortgage payments which means your tenants are effectively paying for your house. After 25 years, the property will be completely paid off and the profits will be all yours. This is another way that rental properties provide a return on investment. |
TAX BREAKS
There are many tax breaks for rental property owners. These breaks help lower your taxes so that you can keep more of the money you have made from your investment in your pocket. |
TANGIBLE INVESTMENTS
(SEE VIDEO BELOW) When you invest in real estate, you are getting a tangible asset in return; an asset you can see and touch. This tangible asset is security for your investment. Since the property will not disappear, neither will your investment. |
CONTROL
(SEE VIDEO BELOW) When you purchase a rental property, you have control over many things. You can control what renovations are done, which tenants live in the property, who manage it, etc. As you can see, there are many benefits to real estate investing. It is no wonder that Andrew Carnegie famously stated that 90% of the world’s millionaires made their wealth through real estate*. If you are interested in learning more about the benefits of real estate, we would love to chat! Real estate is, after all, our passion. |
LEVERAGE
(SEE VIDEO BELOW) Real estate investing takes advantage of leverage. Leverage refers to the fact that when purchasing a rental property, you can use a lender to provide most of the funds for the purchase. For example, when buying a $200,000 home, you may only require 20% or $40,000 for the down payment and a bank will provide the remaining funds. You could never buy $200,000 worth of stocks with only $40,000! |
''Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.''
- Andrew Carnegie
- Andrew Carnegie
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