Buying a home in Houston is about more than just finding a place to call home. Investing in Real Estate Katy Texas has become increasingly popular over the last 50 years and has become a common investment vehicle. Although the Real Estate Agents Houston presents us with the huge amount of opportunities, buying a home in Houston is a lot more complicated than stock or bond investing.
Many believe that buying and holding real estate for the long term is one of the most effective wealth building strategies available to the general population. Here are the top 10 reasons why this is a most preferred model:
Despite the recent real estate crash, when you look at real estate over the long haul, it’s accurate to assume some level of appreciation in your real estate holdings. Also, investors can take decisions based on expected appreciation for a particular market.
2) Passive Income:
Holding real estate can be a very passive investment that provides returns much higher than could be obtained through other passive investments.
3) High Leverage:
Real estate investing provides the higher amount of leverage than most other investments.
4) High ROI:
With the ability to acquire high leverage comes the ability to obtain a very high return on investment. Not only does your monthly cash on cash return go way up when you use leverage, any appreciation on the property amplifies your ROI as well.
5) Principle Paydown:
When you invest in real estate, your tenant provides you with positive cash flow above and beyond your mortgage payment; they are also helping to pay down the mortgage as well.
6) Tax Benefits:
As taxpayers, we always look for all possible avenues for deductions. Owning real estate allows for the property depreciation and mortgage insurance deduction. Real estate can also afford you the opportunity to defer tax liability.
7) Hedge against Inflation:
Many analysts believe inflation is coming. Owning real estate and using leverage is a great way to hedge against coming inflation. If prices rise, so will the cost of housing owning an asset that rises with the tide is a great way to protect your wealth.
8) Increasing Rents:
Most analysts have made their forecast that rents are expected to increase over the coming years. Owning real estate gives the chance to increase future cash flows by increasing rents, thus increasing your Return on Investment in future years.
9) Retirement Income:
For those investors who see real estate investment as a very long-term proposition, the potential to retire on rental income is very real. Additionally, the cash-flow generated from can be very nice supplements to pensions.
10) Creative Exits:
The best characteristic of real estate investing is a large number of strategies that can be used when you sell house fast Houston. Real estate is really worth investing because it doesn’t have to be a permanent proposition. You can own a property for 1 month or 50 years and it is completely up to you. When it comes time to sell my House fast Houston TX, investors can use any number of different strategies to maximize profits.