Getting into the real estate market now may be more accessible than it has ever been before. The biggest draw to buying property is often the high-dollar sale prices that make headlines. However, there are several other reasons why investing in real estate can be a great idea.
Passive Income
Real estate investor Steven Taylor believes that rental cash flow can be an excellent way to earn passive income to support and spend time with your family. If you’re investing in buy-and-hold (or rental) properties, you may be very hands-on to start while learning to deal with managing buildings and tenants. As your empire expands, you could eventually pass the day-to-day duties to a property manager. With the right company, you could reduce your workload to a monthly statement and a deposit to your bank account.
Retirement Strategy
When you’re ready to retire, you could sell your empire for cash. There are also other ways to use real estate for your retirement strategy.
- Flip Houses: Flipping houses usually requires knowledge about home improvement and some cash. If you do your research, choose the right properties and rehab responsibly, you can often sell the flip for substantial profits.
- Real Estate Investment Trust: REITs are ways to invest in a portfolio of properties. REITs are required to make dividend payments of 90% of the income, and equity-based REITs are often considered stable investments.
Diversification
Real estate is often considered a wise diversification strategy alongside stock market investing. Since real estate is traded in a separate, private market, experts like those at Taylor Equities know that property is often not subject to the same trends and risks as the public stock market. Also, the value of real estate is generally subjective and independent of market performance.
Real estate can be a fantastic way to earn money and finance your rock-and-roll lifestyle. With a little research and a little luck, you could be on your way to real estate investment success.
