April 8th, 2014
It’s no secret that recent real estate history has left a lot of people feeling gun-shy and skeptical about real estate investing.
We understand completely. Many companies and individuals lost A LOT of money where property was concerned. Chances are that you, or someone you know, got hit hard.
So is it a bad idea?
Absolutely not. Real estate investing is actually a very good way to invest your money.
Here are a few reasons why:
1.Housing will never go out of style. Everyone needs somewhere to live. Making an informed real estate investment decision (such as considering popular neighborhoods, nearby companies, institutions, school districts and amenities) will most likely mean an almost constant cash flow.
2.Tax write-offs. There is a possibility that your real estate investment will provide tax-free income. What’s more, depending on your income level, you may be able to write off taxes from your other income sources. Look into it with your tax accountant—you may be pleasantly surprised!
3.Bank loan. Buying property is one of the easiest, surest ways to get a loan from the bank—provided you qualify.
4.Great savings plan. Real estate investing helps you be disciplined with your money. By putting some of your income into property, you are not able to blow that money on other things. You will be grateful for this when you reach retirement!
Where Can You Go Wrong?
So if it’s such a good idea, why do so many real estate investors go wrong?
The answer is usually the same across the board: they haven’t done their homework. Not doing the proper research or working with experts is usually the unsuccessful investor’s biggest problem.
When you are going to invest in real estate, not only should you seek professional guidance before you make the purchase, but you should also strongly consider working with a property management company to help you continually protect your investment.