Are you wondering whether or not you should invest in real estate now? This article lists 8 reasons why investing in property is a great idea!!
Real estate investing is a hot topic these days. And with good reason! In recent years, numerous real estate investing platforms and opportunities have risen. Plus, with the current state of the economy, now is a great time to invest in real estate.
Here are 8 big incentives to invest in real estate now, according to Sean Tarpenning.
Low-interest rates
It’s no secret that interest rates are at historic lows. This presents a big opportunity for savvy investors to get involved in the real estate market.
Now is a great time to buy property because you can get a loan with a low-interest rate. This means your monthly payments will be lower, and you’ll have more money for your mortgage.
If you’re thinking about investing in real estate, now is a great time to do it. With interest rates at an all-time low, you can get a great deal on a property and start building equity immediately. If you’ve been thinking about investing in property, now is the time to act!
Tax breaks
If you’re looking for a reason to invest in real estate, the tax breaks may be just what you need. The federal government offers several tax breaks for those who invest in real estate, including the following:
1. Capital Gains Exclusion: If you sell your property for a profit, you may be able to exclude up to $250,000 of the capital gain from your taxes ($500,000 if you’re married and filing jointly).
2. 1031 Exchange: If you reinvest the proceeds from the sale of your property into another piece of investment property, you can defer paying taxes on the capital gains.
3. Mortgage Interest Deduction: You can deduct the interest you pay on your mortgage from your taxable income. This deduction is limited to mortgages of $1 million or less ($500,000 or less if you’re married and filing separately).
4. Property Tax Deduction: You can deduct the property taxes you paid from your taxable income.
5. Energy-Efficient Home Improvement Tax Credit: You may be eligible for a tax credit of up to $500 for energy-efficient home improvements, such as insulation, windows, and doors.
A strong rental market
The rental market is stronger now than ever. With the economy in such a down state, people are finding it increasingly difficult to afford their own homes. The cost of living has risen while wages have stagnated, so more people are turning to renting instead of buying.
This is good news for investors looking to enter the real estate market. With more people looking to rent, there is an increased demand for rental properties. This means that investors can charge higher rents and still fill their units. It’s a great time to get into the rental market and earn a passive income stream.
The potential for capital gains
The potential for capital gains is one of the biggest incentives to invest in real estate now. With the right property and market conditions, you could see a significant return on your investment when you sell.
As anyone invested in the stock market knows, there’s always the potential for capital gains. But with real estate, there’s the added potential for appreciation. That means that as the years go by and property values increase, your investment could become worth more than what you paid.
The ability to generate income
You can earn rental income with the right property to help offset ownership costs. In addition, if you choose to sell the property in the future, you could see a significant return on your investment.
With the current state of the economy, there are plenty of opportunities to buy low and sell high. By investing in real estate now, you can take advantage of these opportunities and make a profit.
In addition, if you purchase property that needs repairs, you can oftentimes get it for a lower price. After repairing the property, you can rent it out or sell it for a higher price, giving you an excellent return on your investment.
Forced savings
Forced savings is a powerful investment tool that allows you to invest money without making tough decisions about where to put it. By automatically investing a set amount of money each month, you can quickly build up a nest egg without worrying about whether you’re making the right investment choices.
This approach can be especially helpful for first-time investors who may not be comfortable making their own investment decisions.
Inflation protection
As we all know, inflation is when the prices of goods and services rise. This affects us all as the purchasing power of our money decreases. Many people don’t realize that inflation also significantly impacts real estate values.
Inflation protection is a big incentive to invest in real estate now. Why? Because as inflation goes up, so do property values. This means that your investment will be worth more in the future.
There are two main types of inflation: demand-pull and cost-push.
- Demand-pull inflation happens when the demand for goods and services increases faster than the supply. This usually happens during periods of economic growth.
- Cost-push inflation happens when production costs go up, such as when there’s an increase in the price of oil or other raw materials.
Leverage
Leverage refers to using borrowed money to finance an investment, and it can help you increase your return on investment (ROI) while also magnifying your risk.
When you invest in real estate, you can typically borrow up to 80% of the purchase price from a lender. This means that for every $1 you invest, you’re investing $5. So, if the property goes up by 5%, your return on investment is 25%. However, if the property values decrease by 5%, your ROI is -25%.
Leverage can be an excellent tool for growing your wealth, but it’s essential to understand the risks involved before you take on too much debt.
Conclusion
Real estate investing is a great way to build wealth and secure a financial future. With the right guidance and a little research, anyone can succeed in real estate investing.
If you’re looking for a reason to get started now, Sean Tarpenning provides eight big incentives that make now the perfect time to invest in real estate. With the current state of the economy, there has never been a better time to start building your wealth through real estate investing.
With over 25 years of experience, Sean is one of the most knowledgeable and reputable sources in the business. Don’t miss out on this opportunity to get ahead of the competition and secure your financial future.
So what are you waiting for? Get out there and start investing today!
