Real Estate has Many Advantages
Real estate has been a desirable way to invest for many years. Whether you own, manage, or purchase a property, investing in real estate can generate enough capital appreciation and income to change anybody’s life. Contrary to what some believe, 2023 is still a great time to dip your toes into real estate. The opportunity to hedge against inflation, receive a steady income, and gain equity are all possible in the real estate market today. Regardless of the economic climate, real estate investments have many advantages. Real Estate can:
- Be a tangible asset that can increase in value over time.
- Hedge against inflation as property values and rent increase.
- Help transform an investment portfolio.
- Generate regular monthly income, bringing in a steady cash flow.
Purchasing Real Estate in 2023? Here are the Benefits
Population growth, inflation, and housing demands can appreciate property values. Real Estate investors will typically take advantage of property appreciation by purchasing properties at a lower rate and selling them for more. Since January 2023, prices for homes in the United States have steadily gone down despite the easing of mortgage rates. The complexities of the market often create a unique trend for sellers to agree to potential buyers’ requests, opening the possibility of scoring significant deals. After months of inflation rates skyrocketing, we finally saw a drop of 6.04% in February compared to 6.41% in January. While this is still above the Federal Reserve’s target, it is an improvement that allows real estate to continue as a great investment option.
Converting your Property into a Rental Home
Affordability issues, demographic trends, and population growth all affect the demand for rental homes. Converting your property into a rental home is recommended since rental markets are expected to rise. As a result of the rental needs, rental rates have been increasing, making the chances of having a vacant property very unlikely. Legally renting out your property can help you pay for expenses such as your mortgage, taxes, maintenance, and more.
Gain Financial Freedom
Real estate can help you gain financial freedom if you commit long-term. Investing in real estate is typical for people looking to supplement their retirement. Earning monthly income while you are retired can bring you a sense of financial security that you may not otherwise have if you depend on only one income to ensure your bills are paid. Many people feel more secure knowing their money is invested in a property rather than having their bank accounts racked up.
Renting a property out is not the Only Option!
For many, buying and renting a property sounds entirely too stressful, but we can assure you that this is not the only option. You have many options in the real estate market, including:
- Purchase an undervalued property that needs to be fixed, fix it, and flip it (sell it).
- Use the ‘House hacking’ method to purchase a multi-unit property, live in one unit, and rent out the rest. This method will cover your mortgage costs and usually leaves more money to spare.
- Get a real estate investment trust.
- Wholesale between buyers and sellers.
Pass Down your Real Estate Investments
If you want to leave a legacy behind for your loved ones, you can pass down your real estate investments rather than giving away cash. Cash cannot continue to gain value on its own, but an income-producing asset such as a property can. Many people choose this route because it’s almost a sure way to ensure the ones nearest to your heart will be okay when you are no longer here.
Real estate is and will likely always be a good investment. At CGI Realty, we work diligently to get your property on the market and sold to a reliable buyer quickly and efficiently. Visit our website OR contact us at (561)507-0107 today.