In our previous post, we looked at five simple steps that you can take to get started with real estate investments. Today, we’ll take a look at some of the reasons why you should do this. There are many different types of investments that you can use to grow your wealth, but we believe when you are done reading, you will agree with us that investing in real estate is one of the best options available.

At Lido Real Estate in Orange County, we are proud to offer each of our clients the highest level of service. Our team of real estate professionals is here and ready to help when you want to find your dream home, get top dollar for your home, or invest in real estate. No matter what type of service you need, we can help. Contact us today to get started with real estate investing.

1. Supply and Demand

No matter what the economy is doing, the prices of houses are almost always going up. The demand for houses continues to rise, which is why you can trust that your home’s value will also go up. On the rare occasions where there is a downturn in the economy, you have a couple of options available to you.

You can stick with your property and wait out the economy without risk of losing money the way that you would with stocks and bonds.
You can purchase more investment property at significantly lower prices.

2. Safer Option

Real estate is a comparatively safer investment option than any stock-market investments. From weather catastrophes and politics to social scams and more, there are many different factors that can drastically and negatively impact your stock options.

3. Passive Income

One of the great benefits that real estate investments offer is passive income. As a property owner, you will receive ongoing positive cash flow each month. This is one of the main reasons that many people choose to invest in real estate in addition to working at a regular job.

4. No Barrier to Investing

Investing in real estate is attractive to many people because there are no skills that you are required to have before starting. In fact, you will likely pick up the skills that you need along the way, as they are relatively simple and thus, quickly learned.

5. Inflation Hedging

During times of inflation, it can be scary to think about what is happening to your stocks and bonds or even the value of the dollar. Investing in real estate offers a great way to hedge inflation as real estate holds its value and purchasing power regardless of inflation.

6. Small Capital Required

Some people have never invested in real estate because they believe it is something that only rich people can do. The truth, however, is that you need only 20% to 25% for the down payment. The rent you charge should cover monthly mortgage payments and any other costs that the homeowner is required to pay, including water, utilities, and more.

7. Tax Exemptions

There are a number of different tax laws, which you can take advantage of as an investor in real estate. Speak with your accountant to make sure that you list as many tax exemptions as you are eligible for, to increase the profitability of your income property.

While these are just seven reasons to invest in real estate, there are many more benefits that you can reap as an investor. If you’re interested in looking into the income properties available in Orange County, then please contact the real estate team at Lido Real Estate today to get started.