Investing can seem overwhelming, conflicting, and downright stressful. With so many available options, it may feel daunting to even figure out where or how to start.
If you’ve considered the real estate route, you’re on the right track towards making the best investment of 2017.
Property ownership has been historically considered a premiere financial decision in diversification and asset allocation. In fact, single family home investors can enjoy an average 10% annual return on their properties. Talk about lucrative!
Let’s take a look.
Single Family Homes: The Best Investment of 2017
1. Real Estate Typically Appreciates in Value
When an investment appreciates, you make more money. Simple, right?
For example, in Southern California, home prices have steadily increased, with the average home in the region now costing approximately $651,000. Imagine this scenario: you purchased a $500,00 home that is now selling for $600,000. That’s 20% profit right there. Imagine what that figure- and profit- could like in 30 years.
Real estate appreciation offers unique virtues of freedom, as you can:
- Live in your home and obtain equity (as it essentially appreciates in value)
- Live in your home and rent out rooms for additional income
- Sell your home, move to a cheaper residence, and enjoy the immediate profits
- Rent out your home and enjoy consistent and steady income (that will also rise over time)
2. Real Estate Investments are Tangible!
Unlike the stock market, property ownership and single family home real estate is “in real life,” as in you can see, experience, and “feel” the property.
This offers flexibility (i.e: you can determine what needs upgrades), a sense of control (you can choose whether to buy/sell/stay/flip the property with some say over the price), and general accountability and monitoring (you pick the location, tenants, and overall structure of home).
3. Real Estate Can Be Passive Income
Look no further than Google to read dozens of successful investors, like this one, who have generated tremendous wealth from real estate properties.
Some investors choose an active landlord approach in home maintenance. Others, however, utilize effective property management companies to take care of all the itty-bitty details surrounding marketing, tenant screening, upkeep, and legal actions.
Just think: With another company managing your property, your only responsibility is cashing those sweet paychecks.
4. Potential for Long-Term Generational Wealth
A sobering statistic: Nearly three-quarters of American wealth doesn’t make it past two generations.
While real estate is not necessarily immune to economic downturns, it can represent a sense of valuable security (literal roof over your head), especially since property ownership rates typically appreciate. This is just more of a reason why single-family homes are considered to be the best investment of 2017.
Imagine being able to pass down owned property and enhance your child or grandchild’s financial future!
5. Real Estate Offers Tax Deductions
Much like owning a business, real estate offers an abundance of tax deductions.
Some examples include:
- operating or office expenses
- interest rates
- local travel expenses
- supplies, maintenance, and repairs
- contractors and employees.
Tax deductions benefit you, the wise investor, as they lower overall, taxable income and provide more leverage for increased cash flow.
Looking to get started on the best investment of 2017?