We all know 2008-2009 brought with them a hideous avalanche of real estate investment nightmares. We all heard horror stories of homes selling for pennies on the dollar of what they were purchased for. Many Americans were under water on their homes and had to start from scratch with a new home and brutally damaged credit score.
After surviving the bubble popping, it’s no wonder there is still a lot of trepidation when it comes to real estate investing. But, we are here to assure you. Now is the time. Real estate is back and it’s safer than ever.
Here’s our favorite reasons to put our money in real estate:
- According to U.S. News, the tax breaks and deductions when investing in real estate is one of the biggest pros. With real estate, you have more deductions and breaks available to you than most investments. For instance, stocks require annual tax consequences. Even if you’re not taking withdrawals, you’re still paying on those dividends.
- One of our favorite facts, real estate investments have been THE best performing investments since Barack Obama became president for his first term. So, since the real estate bubble burst, it came back with a vengeance.
- Mortgage rates. While these numbers tend to ebb and flow, they are still in record lows. While our parents were paying 10-15%, in some cases, for their first homes. Homeowners today have interest rates at a fraction of that cost. That’s a huge change. But, this won’t be the case forever.
- Diversity. While putting all of your money into real estate isn’t the wisest choice, neither is having all of your money in the stock market. Real estate gives you that portfolio diversity that any wise investor desperately needs.
- Purchase prices are expected to rise. According to Realtors.com, home prices are expected to rise between 4-5% over the next year. Meaning, buying now will leave you with an even larger profit once sold.
Still want to talk through the numbers? Great! We have a team ready to walk you through the ins and outs of your next project. Give us a call today.