Investors like to know how well their money performs, regardless of what kind of investment they place their money into. The stock market can take big upturns and can give large payouts in a short amount of time, but it can also take a sudden nose-dive, and you can lose money overnight.
The real estate market is also effected by high and lows, and is impacted by the state of the economy. Both stocks and real estate are investments that can have big payoffs or losses. So, which is a better investment in the long run?
Here are a 3 big benefits that make the real estate market stand out:
Building Equity: If you own a home, and you rent it out- or live in it, chances are that the home will appreciate and build in value over the years. You can write off your interest on your taxes, if you live in it or not. The interest is a write-off, and the rent you collect is income. If the renter moves out, you can always sell the home, or rent it out to someone else. If you rent it, you collect monthly payments again and keep building the equity. Growing your equity is a nice reason to continue to own a home. It’s a solid investment that can grow in value year after year.
Consistent Income: If you buy a home, and rent it out for less than your monthly payment, you can get paid back on that investment month after month. The best part is, that you continue to build equity in the home every year, and you can collect rental income. It’s a win-win situation if you find a good renter that takes care of the home and pays the rent on time. A typical home will rent for more that the payment, so you make $400-1000 over the payment amount, every month. That can be a nice side business!
Depreciation and Appreciation: If you own a home in a neighborhood and the value goes down, that is actually similar to a “tax shelter” by the way that our current tax structure allows you to write off the depreciated value. By claiming the depreciation, you have a large write off to claim on your taxes, bringing your tax rate down, and maybe even contributing to a refund!
If the home appreciates and goes up in value, then you can sell it for more than what you paid, rent it for more than your payment amount, or keep it and let the value and equity grow. Either way, real estate can be a benefit: as a write-off of your expenses (if there is a loss or value) or by collecting a profit through appreciation (an added payment amount or a larger sales price).
Real estate is an investment that many have profited from. As a solid source of income potential, renting your home or buying properties as investments can add up to be a nice business opportunity or retirement plan.
CallThor.com can help you find the right rental property to invest in. Call us and tell us what you are looking for in a rental or investment property in Cobb Co. Georgia, Cherokee Co Georgia or Fulton Co Georgia, and we can find you the perfect fit!