Let’s face it.
There’s far too many options out there that all claim to be great vehicles for accumulating wealth and providing an early retirement for the investor.
Every single one of the plethora of investment instruments out there all promise the world. But sadly, most are riddled with money sucking features.
Volatility, low returns, high fees, and plain bad deals are tied into so many of the shiniest investment instruments out there.
Still, you have a real need to save your money and invest for a retirement. You should not have to work until you die in the 21st century. But people are living longer than they used to. This means you have to identify and invest in rock-solid wealth-producing and sustaining assets now.
Real estate investing in Westminster, Maryland and across the United States has historically been one of the very best investment vehicles.
You can feel safe that real estate investing for long-term provides a sustainable, steady, durable and real path to financial freedom.
If you’re trying to decide which way to turn to invest for your retirement that could last 30 years or more, real estate investing is a safe way to go.
Let’s take a look at the top 5 benefits of investing in real estate – particularly, in rental property for the long-term.
Top 5 Benefits of Real Estate Investing
Build Equity
One of the best benefits of real estate investing in Westminster, MD and across the U.S. is that you build equity.
The majority of millionaires in American, and around the world, throughout all of history, have accumulated and maintained wealth in the form of equity in real estate.
Equity becomes a vital part of your net worth. You build up equity as you paid down the mortgage. You can use this growing equity to invest in more rental properties. So, equity gives you leverage you can use to continue growing your real estate empire.
Passive Income
Another of the top benefits investing is that is close to being tax-free income. This makes it a great shelter of wealth. That’s why the wealthy have used it as a tax shelter since the founding of this country. Passive income means that you make money even while you sleep.
You don’t have to actively, daily and directly work to get paid from real estate rental properties. This would give you the freedom to retire early and enjoy more financial freedom with less risk of losing it all to taxes.
Cashflow for Retirement
Real estate investing that focuses on accumulating rental property provides income when you retire.
If you acquire 30 apartment units are homes in net $250 on average, from each per month, you can live very comfortably in retirement. Especially if you do things like pay off your home and are personally debt-free.
Without college tuition to pay for your kids are expensive debt that you’re still paying monthly, $7500 is a great monthly retirement check in anybody’s book. Plus, you’ll have an ever-growing net worth in the form of equity.
This, of course, is just an example of what retirement can look like with real estate investing.
Ideal Hedge Against Inflation
Perhaps you had the thought, “$7500 sounds good today but what about teen years from now?”
That’s a great question and brings us to our next point.
Real estate investing in Westminster is the ideal hedge against inflation. Renters expect rents to go up by 3 to 5% every single year.
So, you will easily keep pace with inflation by investing in real estate rental properties.
As a real estate investor, you will be in sharp contrast to most people who fear inflation. As prices go up so does your rental income. That means that you are protected from the president and long-term effects of inflation.
As you live in retirement you will see prices of everything increase over the 20, 30 or longer retirement you have. Your rest a lot easier knowing that your real estate is providing a perfect hedge against these rising costs.
In fact, the average annual real estate appreciation rate has been close to 6% in recent decades. Meanwhile, the inflation rate hardly ever reaches 4%. So, there you go.
Exceed the Returns of Paper Investments
It’s standard fare to generate higher ROI on your real estate investments then on traditional investments, like stocks, bonds or mutual funds. The reason why is because those products don’t allow you to invest using debt.
For instance, if you wanted to invest $100,000 into the stock market, you have to invest that entire amount – out-of-pocket. On the other hand, if you wanted to invest into a property that cost $100,000, you may only put 20,000 down, out-of-pocket. The rest you will finance.
You benefit here because you make returns on 100% of the value of the property not just a 20% you invest. So, if both appreciated at the same rate, your return on a real estate investor will be much higher because of how you’re leveraging the investment.
Take Away
Now is a great time to get started with real estate investing Westminster, MD.
The older you get, the closer you get to your need of retirement. With market conditions trending the way they are in 2019, you would do very well to jump into buying rental properties as your vehicle for wealth creation and retirement.
Real estate investing can give investors a stable, steady, and better retirement along with a mix of other asset classes and types in your investment portfolio.
With so much money eaten away in taxes, it’s no wonder wealthy people have made real estate a go-to part of their wealth creation and protecting strategy.
If you would like to learn more about the benefits of real estate investing, you should grab your copy of the Real Estate Investment Starter Kit.
If you are already a real estate investor in the Westminster, Maryland area, are you want to start but don’t know where, you should schedule your Free PROPERTY PROFITS STRATEGY SESSION with our team.
In this free session we will help you map out a winning game plan for starting your investment career in the Westminster market.
