Investing in properties has become a lucrative opportunity for individuals who want to make money without taking too many risks. Real estate investment is a $100 billion industry, but surprisingly, only 9% of Americans are investing in it. Here are some updated reasons why investing in properties is an excellent option today:
Reason #1 – Passive Income
When you invest in a property you can rent it out, and the property will generate income for you without you having to do much work. You can even hire a property manager to take care of the maintenance for you. This income is known as passive income, and it can provide you with a steady source of income.
Reason #2 – Tax-Benefits
One of the most significant benefits of investing in real estate is that you do not have to pay taxes on the growth of your property’s value until you sell it. Additionally, you can deduct the interest, taxes and maintenance expenses as well as depreciate the property over time saving money on taxes.
Reason #3 – Retirement Plan
Investing in a property is a great way to create a retirement plan that continues to grow. By investing money into real estate, you can put money away for your retirement by having your tenants pay your mortgage for you! Real estate investing often a better option than a lot of other investments.
Reason #4 – Appreciation
Depending on the area most investment properties will appreciate in value over time. The land and improvements grow in value and continues to do so for many decades to come, making investment properties a cash flow of wealth for your future. This type of investment is something to consider, especially for individuals in their 20s, as the earlier you start, the sooner you can grow your money.
Reason #5 – Diversification
Real estate is a great way to diversify your investments and it’s a hedge against inflation. Having a tangible asset is also a reassuring investment for most investors planning their retirement.
If you’re interested in investing in properties, it’s essential to find a trustworthy lender who can provide you with an investment property loan. At Noble Mortgage, we can help you with all your financial needs in this area, providing unmatched financing options so you can grow your investment the right way. Contact us today for a consultation!