Currently, the amount of available home equity in the US is more than $13 trillion. Just a few years ago, in 2011, it was $6.3 trillion. The real estate market is growing. Investing in real estate may be a profitable endeavor and a viable investment opportunity when executed correctly and efficiently. Analyzing all the benefits and requirements is the key to determining whether or not you’re a suitable candidate for real estate investment opportunities. Here are just a few to peak your interest:
Anyone who has ever invested in property can tell you that appreciation can be a long term process. Over time, the value of your property should continue to rise. It’s quite likely that your property will be worth much more 20 years from now than it is on day you signed the deed. It’s a good hedge against inflation.
Investing in real estate provides you with the opportunity to rent it to a responsible tenant and generate extra income each month. Rental fees, which you can set yourself, are often enough to cover mortgage payments and other bills and expenses. If you choose to rent your property, keep in mind that being a landlord is a responsibility that comes with legal obligations.
Owning real estate allows you the benefit of deducting depreciation from taxable rental income, reducing the amount of taxes you may pay. There are also additional qualified tax deductions such as interest on your mortgage payment, maintenance, travel, and legal fees. Check with your financial advisor or CPA for tax information and advice.
Contact First Bank of the Palm Beaches for additional information about the value of real estate investing!