Since the last global recession around 2008 most investors have been wary about where to put their money. One of the areas that suffered during the economic meltdown was of course the real estate market and to date most people don’t want to risk putting their money in properties. Nevertheless, if you look at the top entrepreneurial gurus including Warren Buffet and Donald Trump this still remains part of their top investment portfolios.
Simply put if you want to make some money you need to have another look at your city’s real estate market and look for opportunities to invest. With the U.S economy continuing its recovery the market for properties is appealing once again with rising median home prices in almost every city. Here are the best ideas real estate still rules over stocks and other investment options:
1. Cash Flow
If you have invested in a residential property you are guaranteed a constant flow of income. This will not only help you finance any mortgage you have on such property but you will also be able to diversify your investment. The stable income return makes this the most appealing investment; in fact the national Association of Realtors® (NAR) says 80% of the total U.S. real estate ROI between 1977 and 2007 came from income return.
Real estate gives you a plethora of options where to put your money. You can invest in new construction, basic rentals, REITs, real estate investment groups, real estate trading, flipping among other options. You have a investment to pick from and the freedom to put your money where it really counts.
3. Tax Write-offs
Based on your classification as an investor in the Colorado Springs market your rental property can give you tax deductions to use against other income. Tax benefits come in handy especially during these tough economic times and your investment can help you get much needed reprieve on your income.
4. Retirement Plan
You have a 401k plan but how else are you planning for your retirement? Well, if you don’t have a solid future plan for your future a real estate investment is a good way to force yourself into a good retirement. It is a long term plan which will help you to build a constant future stream of cash return.
5. Good Tangible Asset Value
Unlike equity investment or other areas where you can put your money real estate is backed by high-level value of brick and mortar. You don’t have to depend on the professionalism of your financial investor or planner to gain income. You property is an asset which stands for itself in the market and all you need is the right marketing. Even if you have invested in REITs there are clauses in the agreement that guarantee you a certain amount of profit in form of dividends irrespective of the annual performance of the estate.
If you have been looking for a way to get into the real estate market there are myriad ways to get in and create a solid portfolio. Isn’t it time you started looking at the market?