Property investment can be one of the most rewarding investments a person can make. Stock market investments are often misleading, and don’t always result in the kind of positive cash flow which real estate investment can provide. So, keep reading to learn why real estate investment might be worth your time.
Now is the Perfect Time
The housing market is finally recovering from the recent housing market crisis, resulting in low home prices along with low interest rates. Home prices and interest rates haven’t been this low in years, meaning it’s the perfect time to make a great investment in a good location. Just be sure to research every location. Like Jason Hartman says, not all income properties are created equal.
Work on Your Own Schedule
When investing in real estate, you become your own boss. This provides a lot of freedom to work on your own schedule, choose what property to invest in, how much to charge in rent, and what tenants will move into your properties. It will be up to you to manage and maintain every property, but the choice is yours as to how each property is managed, and what days and times are best to invest time and energy into it.
From Passive Income
Once you purchase a property, it’s possible to benefit from a passive income by
renting it out to tenants. Choose an amount to charge for rent which results in positive cash flow. For instance, if you own one property and rent it out for $1,000 per month, and pay $300 of the amount to maintenance expenses, plus $300 for the mortgage, you’ll be bringing in roughly $400 per month. This may not seem like much, but it’s easy money and what if you were to purchase several properties? The possibilities begin to intrigue.
Paying the mortgage on a new property can’t be avoided. The obvious route is to take the money earned from tenants and put it towards the overall cost of the property. While this will subtract from earnings, it makes it so the tenant is paying off the mortgage of the property. That being said, once the mortgage is paid off, you end up with an asset another person paid for.
Real estate investment is the perfect strategy to build up savings. For instance, if you’re earning $7,000 a month alone on income properties, and you save all the money away for retirement, you’ll have a fantastic retirement fund. You may even be able to retire early.
With the low prices on properties today, it might be time to look into property investment early to build savings for the future, and create wealth while you’re still young.
The Young Wealth Team