Real estate is always a good investment. In fact, Money News did a survey in which they discovered that 77% of millionaires invested in real estate of some kind. Why would anyone choose to rent anyway? There are many explanations that seem logical. But how correct are they?
The argument i hear the most is this: "I don't want to pay for taxes or repairs." Guess what? They are not being paid by the owner when you rent! Lets do a little math. Say you have a $100,000 townhouse that you rent for $1400/ month. Total cost for the mortgage is $575 (rounded for the sake of simplicity). Taxes are $150 per month. If 10% is put away for repairs, that means the total cost for the landlord is $865 every month. With a rent payment of $1400 that leaves a net gain of $535. Although this is a hypothetical situation, it is what is happening every day with landlords. Why have an investment property if you are losing money? You dont.
The other argument I hear is that real estate can lose value. Everyone points out the housing market collapse and subprime mortgages. Interesting fact is that even through this "crash" the real estate market increased at a rate of about 2% a year. Current interest rates for investing are around 1%. Even in a bad economy the real estate market is still steady.
So what excuse is left? There is none. Many people develop wealth through real estate. And there are tax advantages as well. Talk to your accountant about the benefits of home ownership. Now its time to buy a home. Feel free to speak with my team to get started. Lets find you a home and stop paying rent.
Bel Air MD Real Estate- Shawn Kerr, REALTOR with EXiT Preferred Realty in Bel Air, MD. My goal is to provide superb service in order to meet all of your real estate needs. I am a true professional who will do what is necessary to make that a reality. Feel free to contact me directly at (443) 686-9750.