REAL ESTATE INVESTMENT
Here at 3 Keys Lending we want to provide you with the information and resources to get started in real estate investment. Here we will discuss some of the key advantages of investing in real estate. Talk to one of our experts today.
One of the great benefits of investing in real estate is that of passive income. When you buy property and mortgage it out you are building equity for your name as you pay it down. This will help you = leverage to grow wealth and reach your financial goals. When you rent out your property while paying your mortgage, the monthly rent you charge will be more than sufficient to cover monthly mortgage payments. You will essentially be letting somebody else pay for a property that will eventually become an asset in your name. During and after paying off the mortgage, having tenants on your property will be a source of passive income.
As you work to invest and save for retirement, real estate will help you diversify your portfolio and will be an appreciating asset. Real Estate has a low and sometimes negative correlation with other asset classes. It also acts as a hedge against inflation. An increase in inflation only means an increase in cash flows for the property owner. Your return will be higher and less risk will be involved. Land is one of the few appreciating assets.
As a real estate investor you can take advantage of tax breaks and tax deductions. Tax breaks are given to all home owners in the United States. You are also eligible for tax deductions involving owning, operating and managing property. Rental income is also not subject to self employment tax.