Success Stories: Purchasing Real Estate As an Investment
Filed under: Real Estate Market
You may wonder, is it even worth investing in real estate if you can only afford to put 10% down? The truth is that real estate appreciates each year. Whether you pay for it in cash or have a loan on your real estate property, the asset will grow and earn you more money.
Real Estate Investment Increases
For example, if you purchase a property for $500,000, the real estate property appreciates on average at a rate of 7% per year. As you hold onto the asset, you will realize a 7% yearly return.
Even if you only put 10% down, your loan interest rate will be less than the 7% that you gain on your real estate property. Realize an average of 7% gain per year with real estate investments. It’s a powerful profit specific to real estate.
Rent Increase with Inflation
If you are worried about taking the plunge into owning property for yourself, do not forget to consider the control you can have over rental prices. Over a span of 7-10 years, rental prices can significantly increase with inflation.
If you have a fixed mortgage on the property, each time you raise the rent for your tenants, it will be pure profit for you. Keep up with the times by keeping your rent competitive while collecting a higher income on your rental property.
Write Off Repairs on Your Investment Rental Property
In addition, did you know you can write off repairs and renovations on your owned rental property? When you invest in real estate and use the property to rent out to tenants, you must make repairs from time to time. The repairs are a business expense that you can write off on your taxes to lower what you owe overall.
If you are ready to own a property in Temecula, now is a great time to invest. Use your rental property to your advantage by immediately starting to pay back your investment. Investing in real estate almost always comes out as a win, returning great averages year after year.
Send me a text, email, or call at (951) 473-0390 or [email protected] when you are ready to make a move.