reasons why real estate investment is smart
TRANSCRIPT
6 Reasons why Investing in Real Estate is a Smart Financial Move
Real estate business can be risky sometimes, however 2015 shows a promising future for real
estate investors. Gennady Barsky wants to share with you the six reasons why investing in real
estate is the best thing to do right now!
Mortgage Rates are Low
Last time mortgage rates were low, many people bought too much real estate borrowed against
their real estate equity and crashed the market. While you should make sure not to make the
same mistakes they did, there is much opportunity in the once again low mortgage rates. If you
have the resources to put a down payment on a property, that property will pay you back
immeasurably.
Foreclosure Rates are High
Since many of the homes from the real estate crash are now foreclosures, those properties on the
market are cheaper than the ones that are spruced up for open houses. While they may need some
work, the banks would rather make a quick profit than fix them up and sell them at a higher
value.
More People Want to Rent
People who lived in homes that were foreclosed on most likely still want to live in houses and
not apartments, so many couples and families are looking for homes to rent until they can afford
to buy again. In most cases, the cost of rent will meet or exceed the cost of the mortgage, so if
you rent it out continuously, eventually the property will pay for itself.
There’s No Insider Training in Real Estate
Knowing the ins and outs and “secrets” of the real estate market isn’t illegal, unlike with
investments in the stock market. The real estate market is different everywhere; if you know
what your local market is like, and where is best to buy early as the area gets hot, is the best way
to go. If you don’t know a lot about the area or real estate, hire a real estate agent who does. Do
some research, check out all the neighborhoods, and make the best possible investment.
Real Estate Has Greater Dividends Than Stocks
The highest dividends stocks only pay about 4% or lower each year, which is much higher than a
bank savings account, but hardly above inflation. A real estate investment will usually have a
much higher value over a shorter period of time, and renting it out will generate instant cash.
Also, you can sell it at any time without the high tax consequences that cashing out stock
investments have. Even with the market going slightly up and down, properties are worth more
now than they were 30 years ago.
You Can Add More Value to Real Estate
Buying a property for under market price is very possible, and then you can add value by making
repairs, updating appliances, adding landscaping, and more. Combining that with the regular
value appreciation can massively increase the future selling price of your property.
Gennady Barsky is a real estate mogul and a successful entrepreneur who hails from NYC.