6 Benefits of Real Estate Investing

Real estate investing involves a lot of work and research. However, there are numerous benefits to enjoy as a result of all this work.

1: Successful investing creates multiple streams of income. You can purchase a property and hold on to it. One of the more lucrative scenarios includes bringing in renters. Another way to create income is from flipping: buy a property, perform a rehab and sell it for a profit. Savvy investors are making huge profits right now by simply buying rundown homes.

2: Tax Shelter and Deductible Benefits. Real estate investing offers significant tax shelter and deduction advantages. Interest paid on mortgages is deductible as are the profits from a Roth IRA if you use one to handle your real estate investments.

3: Profit. There is an enormous earning potential from investing in real estate. The current market is ripe for rehabbing and flipping. Even at a conservative estimate, a real estate investor could stand to bring in 30% or 40% profit.

4: Portfolio Diversity. Diversifying your portfolio is a safe way to secure your profits. This way when one of your investments isn’t working out, there are other, stronger investments to carry you until things even out. Investing in real estate is a great way to diversify.

5: Continuous Income. If you choose to rehab a property, you can choose to hold on to it and rent it out. This is a great option for individuals who are retired and are looking for ways to supplement their income.

6: Appreciation. Real estate has a natural way of increasing in value – even if the only thing you do is mow the lawn. This is because real estate traditionally appreciates at an annual rate of 9%.

So, real estate will always offer profitable opportunities - these benefits prove that it is one of the safest investment vehicles around.