Real Estate Investing: The Pros

With the craziness of the real estate market, this might be a good time to consider real estate investment, i.e., where the property generates income instead of being a primary residence,

  1. Cash flow from rents: Higher rents these days are generally greater than mortgage payments.
  2. Long-term security: Real estate appreciation (see below) should bring in a guaranteed cash flow for years to come.
  3. Appreciation: Real estate properties are considered one of the most reliable sources of renewable capital as they tend to increase in value over time.
  4. Hedge against inflation: As inflation occurs the property’s value and rental income will also increase. However, the mortgage will remain the same.
  5. Tax benefits: Rental payments are not subjected to self-employment taxes and there may be other benefits such as depreciation and lower tax rates.

Leave a Comment