Why You Should Invest in Real Estate

Real Estate Investment Lafayette CA

Real estate is the best way to make an investment.

From stocks and bonds to CDs, making financial investments is a smart choice. But, what may be smartest investment of all is real estate! Here’s why investing in real estate is a wise decision.

Make an Illiquid Investment

Real estate is a solid investment… literally. Liquid investments like stocks and bonds get you a set return based on a percentage. Real estate, however, can earn you a cash-on-cash rate. Plus, owning a home increases your leverage factor.

Pay to Buy or Rent

Whether you buy a home or rent a home, you’re still paying for it in either case. Why not pay toward something you own? You’ll have more to show for if you own rather than rent.

Get a Tax Break

Buying a home is incentivized by the government. When you own a home, you’re given tax deductibles on your mortgage interest and property tax.   Find out from a Tax Professional your net housing costs after tax benefits and compare that to your current rent.  You’ll be amazed.  Plus, when you sell your home there are filing exclusions if your profits are under $250,000 as an individual or $500,000 as a couple.

Withstand Inflation

Historically, home equities have increased alongside inflation increases. Because the value isn’t diminished by inflation like other types of investments, home buying is an attractive investment.

Force Good Savings Practices  

In order to buy a home, you need to make monthly mortgage payments. When making such frequent payments, you need to plan ahead. Thus homeownership increases your incentive to save money, forcing you to learn good saving practices.

Looking to invest in real estate? Contact professional Realtor Cary Amo in Lafayette, California for all your real estate needs.

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