You don’t need to be a realtor to see the potential in investing in real estate. However, our experienced team at Retter and Company would like to share four fantastic reasons to make the move into real estate investment to secure your future.
1. Investing Builds Equity
One of the top benefits of real estate investments is that they can build equity as assets that become a part of one’s net worth. Each mortgage payment builds equity, which buyers can use for major purchases such as home renovations, education or other needs in the future.
2. Portfolio Diversification
Why simply invest in stocks and bonds when tangible assets like real estate can also be monetized regardless of market conditions through renting or even residing in the dwelling?
Furthermore, this route gives your portfolio a bit of diversity that can provide investors with a greater sense of stability during unpredictable and variable market conditions, as real estate is typically far more resilient against market swings.
3. The Option to Generate Passive Income
With a real estate property investment, there is generally an opportunity to generate nearly tax-free income by allowing a rental property to work for you. As investor build equity, many opt to purchase multiple properties to rent to create enough income to call it a ‘full-time’ job.
4. Create Collator for Financing Leverage
Real estate investments are easy-to-use vehicles to gain financing for additional purchases. In many cases, one can borrow between 50-80 percent of potential acquisition costs for reasonable financing rates with solid equity. These types of options for liquidity and leverage often don’t exist with stocks, bonds or commodities.
If you’re interested in investing in real estate property, contact Retter and Company to talk to an experienced realtor in Kennewick WA today.
