Real Estate is The Best Long-Term Investment

Real estate is the best long-term investment, according to investors in the most recent Bankrate.com Financial Security Index survey. Many people assume the best rewards come from stocks and bonds, so why are more investors turning to real estate? Real estate has its own benefits that set it apart from other investment options.

More control

Real estate is a tangible investment, and it often provides more peace of mind because you can see your investment and know its condition at all times. Real estate is also a hands-on investment, giving you direct influence over your return. You make all the decisions, including the price of rent, quality of furnishings and improvement projects.

Higher, more stable return over time

Return on investment may be low at the beginning since real estate often requires a large initial investment, but over time, once the mortgage is decreased and eventually paid off, you can see significant returns. Rent prices will continue to rise as the market changes, but your mortgage payments will stay the same on a fixed mortgage. With each increase in rent for your tenants, you’ll most likely walk away with greater profit.

Unique tax benefits

Owners of rental properties can take advantage of certain tax benefits unavailable to regular homeowners. As a landlord, your mortgage’s interest payments, operating expenses, property taxes, insurance and depreciation are all tax deductible up to a certain point.

Many people shy away from investing in real estate because of the upfront costs, such as the down payment and other expenses associated with buying property, but the long-term benefits may outweigh those short-term costs. A financial advisor can help you evaluate your finances. If you’re ready to invest, one of our real estate professionals can help you explore options.

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