Reasons to invest in real estate
According to the National Association of Realtors (NAR) second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold in 2006. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.
Returns of 10 percent and more are not uncommon if you select good real estate properties. It’s a return rate you won’t find on bank products or with most stocks.
#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.
#3: Less Volatility
While real estate cycles through periods of highs and lows, it doesn’t change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.
#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).
#5 Value-Added Improvements
The saying “buy it low and sell it high” applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.
If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.
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About The Author
His testimonials speak volumes about his work ethic.
Rich Ferretti is a Charlotte NC Residential Real Estate Professional that can assist you with the purchase and/or sale of real estate in Charlotte, North Carolina and surrounding areas, from bank owned homes to new construction to waterfront property, and everything in between.
- Rich is a Relocation Specialist that has created a network of real estate professionals throughout the country in an effort to assist people relocating to Charlotte NC.
- This professional is an expert in the field of relocation and can serve many purposes beyond a simple home search. In addition to being a Relocation Specialist,
- Rich also holds the designations of Broker, Accredited Buyer Representative (ABR), and e-PRO and is licensed in North Carolina, South Carolina and New Jersey
If you are considering Homes for Sale in Charlotte NC, Rich can help!
Please visit www.RichFerretti.com for your Real Estate Needs.
Rich Ferretti – Broker/Realtor - 704-564-0807 – Rich@RichFerretti.com