It's never been a better time to invest in real estate. At least 36% of households rent homes instead of owning them according to the 2019 census (and that number is likely higher now). The rental market is hot, so why not get in on it?
The idea of investing in such an expensive endeavor might seem scary. How do you know that you're going to be able to make money? Isn't it hard to manage properties on your own?
We're here to talk about the benefits of real estate investing so you can decide if it's right for you. Read on to learn more.
1. You Get A Second Stream of Income
Most property investors already have "day jobs." If you feel like you're not making enough money at that day job, investing in real estate is a great idea. It's a second stream of (almost) passive income.
If you want to prepare yourself for financial freedom and an easy retirement, having multiple streams of income is key. Instead of getting a side hustle, invest!
2. It's a Great Way to Diversify Your Portfolio
So what if you already have a few investments? If you're only invested in things like stock and cryptocurrency, you can diversify and protect your money by adding real estate.
Real estate is a hard asset. It can protect you against shifts in the stock market because people always need housing. While housing may also go through changes, you're never going to end up with no rental income as long as you maintain a tenant-friendly property.
3. Tenants Pay Off the Mortgage
Let's face it: getting started as a real estate investor costs a significant amount of money. Knowing that you're going to be buying a property and paying off a mortgage might make you reconsider.
As long as you have tenants on your property, they're going to be paying off that mortgage for you (and then some). This should motivate you to be a great landlord.
Extra bonus: if you plan on someday living on that property (if you're renting out a family home, for example), you'll be able to take it over in the future without worrying about mortgage payments.
4. It's Easier Than Ever
It's true that being a landlord isn't 100% passive income, but it's closer than it's ever been when you invest in property management services. A good property manager can help you with real estate asset management, tenant communications and placement, marketing your property, and more.
The property managers exchange their services for a small percentage of your rental income, and they're more than worth the cost.
Is It Time to Invest in Real Estate?
If these benefits appeal to you, it might be time for you to invest in real estate. It's a solid investment that will boost your portfolio and make you a steady secondary income. What are you waiting for?
At Wolfnest, our experienced property managers want to help you take care of your investment. Contact us so we can start working together today!