Since the economy continues to grow and more Americans are getting back on their feet, it’s becoming easier to invest more money, instead of merely scraping by just to put food on the table. Now the question is where should I invest my money? Is it better to invest back into the real estate market and have a more tangible asset, or is it smarter to invest in stocks and bonds? In the end it depends on the amount of money you have to invest.
In this article we’re going to cover the benefits of investing in real estate over investing your hard earned money into stocks and bonds. Real estate is on the upward trajectory and it will only continue to increase into the future.
What different ways can I invest in real estate?
There are several ways that you can invest in real estate today, all of which require different amounts of financial investment and time on your end.
One of the main ways to invest today is in rental units. There’s over 34 of American households today that are rental units, both single family units and multi-family units such as apartment buildings and town-homes.
The investment in single family properties continues to remain strong, just as it has throughout the years. Investors continue to place their money into real estate as it remains a steadier, more long-term investment, and also has other financial incentives as well.
What are the advantages of investing in real estate?
Investing in real estate allows you to finance a portion of the initial purchase price, so that you can invest in an asset that’s much higher. Thus, making your return on investment much greater, in the long run. Real estate is the only industry that allows you to do just that. As such, a small increase in property value can lead to very large returns.
There are also tax benefits that end up saving you money. This is different from investing in CDs, stocks and bonds, as they will end up being taxed. By writing off certain housing costs, such as mortgage interest, repairs and depreciation you actually end up writing off depreciation on an asset that is increasing in value.
Besides, the tax benefits and value of the home, there are other ways you can increase your return on investment. For instance, you can rent out the property to put consistent cash into your pocket. This extra cash can then even cover your mortgage and costs of repairs. An investment in the housing market has the potential to pay itself off very quickly if you are able to be creative with ways you can better utilize this asset.
I hope this article has been valuable and you now have a better understanding of the benefits of investing in real estate over stocks and bonds. Investing in real estate today is one of the smartest decisions you can make for your bottom line.