3 Biggest Benefits of Investing in Real Estate
Nothing provides peace of mind like having some extra cash saved up in case of an unexpected emergency.
If you’re fortunate enough to be putting away money on a regular basis, though, you may find yourself rapidly accumulating more savings than you could possibly spend. Rather than leaving thousands of dollars just sitting idly in your bank account, though, why not put your money to work for you?
Investing in property is an excellent way to get even more value out of your hard-earned cash!
Top 3 Reasons Why You’ll Love Investing In Real Estate
1. Owning a Rental Property Provides Steady Income
While it’s true that every rental home experiences periods of vacancy in between tenants, this shouldn’t distract you from the bigger picture.
Keeping a well-maintained property and carefully screening prospective tenants enables you to minimize the amount of time during which your income property remains unoccupied. For added security, you can also require tenants to sign a lease, guaranteeing you’ll receive consistent rent payments for a set length of time.
Remember to pay attention to your local rental market when making decisions about the duration of your lease agreement, how much rent to charge, and whether or not rent will cover utility costs.
2. Investing in Low-Cost Properties is Less Risky Than Playing The Stock Market
Stocks are vulnerable to both the state of the economy and the health of the companies you invest in. Because these conditions can change so rapidly, and sometimes without much warning, the stock market is especially volatile. Even if you keep a close eye on conditions, there’s always the risk of suffering significant losses when you buy stocks or bonds.
Real estate, unlike the stock market, does not typically experience such drastic and unpredictable fluctuations in value. By purchasing low-cost investment properties, you can minimize your overall risk and quickly begin to earn a profit, either by flipping or renting out the home.
While owning a rental property will provide consistent revenue, as we discussed above, flipping a house (or selling it for more money than you initially paid) is, of course a faster way to earn a profit.
3. Desirable Neighborhoods Practically Guarantee Profits
There will always be demand for housing in attractive neighborhoods.
Whether you’d prefer to flip or rent out your property, always take the time to properly research the neighborhood(s) you’ll be investing in. Apart from analyzing factors like crime rates and school ratings, find out how the supply and demand for homes in the area relate to one another; when demand exceeds supply, you’ll likely have no problem finding an eligible tenant or buyer in a timely fashion.
Sites like Redfin, Zillow, and Trulia are all great resources to consult to find out how many days, on average, listings are staying on the market in your desired neighborhood. It’s also wise to speak to a real estate agent for more detailed information about the area before you make any serious decisions.
Start Investing In Real Estate Today!
If you’re interested in becoming a real estate investor, make sure you browse our nationwide inventory of affordable homes today! We’re constantly adding new listings throughout the country, and offer special discounts to cash purchasers.
For more information about buying a home through CastleRock, please contact our friendly staff today!
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