Why Real Estate Is a Great Investment
Making Your Money Grow
Those who’ve done well for themselves in business often seek ways to augment their wealth through smart investments. “Putting your money to work for you”, “using money to make money”, and “making money while you sleep” are popular maxims in the investment world. Indeed, many people have built immense fortunes by investing their money wisely.
How to Invest your Money
So where should you choose to invest your hard-earned money? Well, that is (in some cases quite literally) the million-dollar question. The stock market is one of the primary places people look to invest their money, however, it can be quite volatile at times, making it a risky gamble. A good rule of thumb in the stock market is that the stocks that offer the greatest potential reward are the ones that are also present the greatest risk to investors––so invest wisely.
Investing in real estate, in the form of investment properties such as houses, rental units, etc. is another popular place for people to put their money. While almost anyone can purchase shares of equity stocks, real estate requires a significant upfront investment (and often loans) which means that it is not an option for everyone. For those with the capital to do so, however, real estate property can be a very smart investment. In this blog post, we’ll take a look at five of the top reasons to invest in real estate.
Top 5 Reasons to Put Your Money in Real Estate
- Cash flow Oftentimes, investment property owners don’t have to pay any taxes on income from rental properties thanks to depreciation and deductions on mortgage interest. More often than not, the owner of a rental property won’t pay taxes on their property’s cash flow until capital gains upon sale of the property.
- Leverage One of the nice things about owning real estate is that it can be used to secure loans from banks. Property can be used to secure loans from banks easily.
- Tax incentives A huge advantage of owning investment property comes in the form of tax incentives and deductions. The government rewards those who own rental property with a variety of tax benefits including appreciation, deductions, and appreciable lower taxation rates on profits in the long term.
- Appreciation Generally speaking, real estate property values tend to appreciate over the long haul. This means, as you’re paying off the mortgage on your property, its value is going up. While property values can depreciate in the event of a recession, property values are still likely to increase in the long run, especially in hot real estate markets like that of San Diego County.
- Inflation When the value of money goes down, costs go up. Currency inflation causes the price of everything to rise––including rents. While most people dread the idea of having to pay more for a gallon of milk, property owners often welcome it as it causes rents and property values to rise as well.
Real Estate in North San Diego County
Less than 40 miles from downtown San Diego, the master-planned community of San Elijo Hills features beautiful hilltop homes.