Real estate can be a great investment — and there are lots of ways to go about it.
You can buy a home and rent it out to a full-time tenant. You can Airbnb a property. You can invest in a duplex and live on one side and rent the other. You can even do some combination of these.
Whatever you decide, though, you’re in for big benefits — particularly in today’s hot housing market. Here are just a few of the perks you’ll enjoy when buying an investment property:
1. Extra income.
First and foremost, an investment property allows you to bring in extra cash. Depending on where you buy and the market it’s in, it could be a considerable amount of income, too. These are funds you can put toward retirement, invest, or even use to buy more properties and expand your real estate portfolio.
2. Tax breaks.
There are tons of tax breaks that come with running a rental property. You can write off mortgage interest and property taxes, as you can with other real estate, and you can even deduct things like repairs, operating expenses, supplies, and depreciation. All in all, it can be a great way to reduce your taxable income.
3. A potential getaway.
Unless you’re renting out the property full-time, your investment property can also double up as your own vacation home. Just make sure to buy in an area you know you and your loved ones will want to visit. If you go there often enough, it could save you a pretty penny on lodging and travel costs.
4. Hedge against inflation.
Real estate is generally considered a pretty good hedge against inflation because when prices rise, home values rise too. In today’s high-inflation economy, this can be a huge perk — particularly compared to other, more volatile investments like stocks or cryptocurrency.
Finally, real estate can be a smart way to round out your investment portfolio and add a little diversity. No matter how great you are at picking stocks, you always want to spread your money across different asset classes. This ensures you’re protected (at least partially) if there’s a downturn in one area of the market.
Ready to invest in real estate?
If you’re ready to invest in real estate, get in touch with Park Cities Mortgage today. We’re here to help.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 6201 West Plano Parkway, Suite 100, Plano, TX 75093 | NTFN NMLS 75333.