Today’s topic will be the very compelling reasons why you should consider investing in real estate now.
Before I get into those reasons, I want to stress why it is I think this is important. I come from a family of real estate inventors, and the one thing we all have in common is that we want to retire.
Most us know that, as an average American, we can’t save our money fast enough for retirement. Most Americans are very, very behind in having enough money in reserves for when it comes time to retire.
When you look around, there aren’t a lot of pensions available at companies anymore. The investment opportunities out there are so limited and they just don’t give you a lot of return.
While owning a rental property may not seem very glamorous since it’s a long-term strategy, there are some compelling reasons to consider it.
“Most Americans are very, very behind in having enough money in reserves for when it comes time to retire.”
The first reason is as I already said: we can’t save fast enough. If you try to save a portion of your income every month, that’s good, but most of the time we’re not able to save fast enough to get us to the end result of what we want to retire on. When you invest in rental real estate, you have somebody that wakes up every single morning and goes to work to pay your mortgage off. I don’t know about you, but that’s pretty attractive.
Yes, there are costs involved with owning rental real estate. Done correctly over the long term, your asset and equity position can be far greater than anything you’ve put into it.
Another reason is that you will get tax incentives. Instead of paying the government, we can pay ourselves a little bit more money by taking advantage of the tax incentives that we get from owning investment properties. It’s a beautiful thing, right?
Additionally, even if you’re not looking at it in terms of a retirement option, you get an equity gain on average. So if you plan to hold a property for several years, you get the possibility of a good equity position as well as a pay down. You could also use it as a college savings plan by either using the equity to pay for expenses or by purchasing a rental property near the school so that your kids can live there and rent out extra rooms.
There’s also the possibility that, down the road, you would get passive income through cash flow. I know a lot of people looking for passive income in their retirement years because once they stop working, where’s the income going to come from?
So again, rental real estate isn’t glamorous, but I will say it’s definitely worth it.
If you’re considering buying an investment property or want to learn more about it, please let us know. We do several seminars about it throughout the year. We’d be happy to give you an invite.