Here are five excellent reasons to invest in real estate this year.
Here are five reasons why it’s a good idea to consider purchasing investment real estate in 2021:
1. Interest rates are incredibly low. We’re seeing investment loans right now fetch a 3% interest rate on a 30-year fixed mortgage. That’s very cheap money and will give you more cash flow as an investor.
2. Home prices are appreciating rapidly. Last year, we saw prices go up around 8% to 9% in Athens alone. If you purchased a $200,000 home last year, it should be worth around $216,000 today. If you put $50,000 down, that’s a 32% return on your investment (your down payment) in just one year. And that doesn’t include the monthly cash flow you’ll receive from the property and the depreciation from your taxes.
“When inflation happens, your real estate assets will go up in value.”
3. Rental rates are increasing. There’s a big demand for rental properties in this area because rent has skyrocketed in the last few years. If they continue to rise, your cash flow goes up while your interest rates and payment stay the same.
4. It’s a hedge against inflation. In my opinion, as more money is printed and produced, we should see some inflation. We might not see it in a year, but we will in five to 10 years. When inflation happens, your dollar will buy less, meaning houses will go up in value in relation to the dollar.
5. It’s better to buy sooner than later. As a general rule of thumb, when you look at successful real estate investors, they grow their wealth over time. Think back to when your parents or grandparents bought their first house and the difference between what it was worth then and what it’s worth now. While both land and houses will likely appreciate, properties that are rented will produce cash flow each month which means tenants will help pay for the property.
If you have any questions about buying a rental property or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
