Why Investing in Real Estate is I.D.E.A.L.
Real Estate is one of the best ways to invest and grow your wealth. Because real estate is consistent, tangible and much more easier to control than say stocks, real estate is the I.D.E.A.L investment.
I – Interest deduction is a great reason to invest in real estate. Because you can deduct a variety of your business expenses when investing in real estate, you save a significant amount each year on your taxes.
D – Depreciation, although the real estate market is typically appreciating. The government allows you deduct or depreciate your property over a certain amount of years. This can help offset your income, almost like making some tax-free income each year.
E – Equity can be built fairly quickly in real estate. If you have around 20 – 30% equity in a property, you’re building your net worth. Another way to build equity is through paying your mortgage down. Having renters pay the mortgage each month it helps to build your equity.
A – Appreciation rates are typically between 2 and 10% a year. The value of your property can go up each year you own it.
L – Leverage is great in real estate because you can invest in more with less money. Leverage also allows you to borrow 100% of the money for a deal when you have a lot of equity. This keeps you from using your own money on every deal.