Today’s world is becoming very competitive, as everyone is looking for a way to make more money and protect their future.
Real estate has always been in the scope of investors and it’s no surprise that this trend continues to rise, as it has obvious benefits that are hard to beat:
- Low Volatility: Unlike the stock market, prices in the real estate industry move slowly. In the stock market, a buyer may become a millionaire overnight. However, the reverse is true as well; There are usually more riches-to-rags stories than rags-to-riches dreams come true. On the contrary, real estate has a much lower deviation with safer returns.
- Tax Benefits: Although most people are unaware, income from real estate properties is not subject to the same level of taxes as companies or Startups. Not only is the income not subject to self employment tax, but the government offers tax benefits such as depreciation and lower tax rates for long-term profits.
- Pays for Itself: Once you manage to compile the down payment, the monthly rent should cover the mortgage. So basically every month, the rent is just adding to your wealth as you slowly own more and more of the property. It doesn’t get any better than that, does it?
- Appreciation: If the 3 factors above didn’t convince you, now imagine that by the time you decide to sell, your property is now worth 130% of the price you paid. This is not far from reality, as properties tend to go up with higher demand than supply. On top of that, Orlando is considered to be one of the fastest growing markets in the country – almost guaranteeing that 10 years from now, your property will re-value itself more than inflation & interest rates will.
As everything else in life, the act of investing by itself won’t do the trick. It’s important to know the product, find good deals (buy low), understand the area of the property and manage the asset through its life to know when to rent and when it’s time to sell. But why not give it a try with the right help and guidance ?