Why Real Estate is One of the Best Investments
Filed under: Finances
A lot of people are talking about investing in cryptocurrencies. If you think that’s a good investment, maybe we should circle back to real estate. I’m going to explain to you why. I want to help you see why real estate is one of the best investments, even if it’s your primary residence. Here are a few things to consider:
Leveraging Your Initial Investment
First, let’s talk about leverage. If you took $50,000 and put it down on a $500,000 house, and that house goes up 10% – that’s $50,000. Now we are talking about a $50,000 gain on an initial investment of $50,000. But that’s not all.
You Have a Place to Live
With this particular investment, you can live in it! Unlike a stock or other investments you might make, this investment would allow you to solve your housing problem. You’re not going to have the need to rent another house because you can live in the asset you already purchased.
Paying Against the Principle
Lastly, consider that a home with a fully-amortized mortgage (feel free to call me if you want to learn more about what this means), you are forced to pay some sort of principal balance down each and every month. That is a nice hedge against anything that could happen in the real estate industry, such as short-term dips.
Long-Term Financial Strategy
In the long run, real estate always rises. You can take advantage of the entire value of the house with just a fractional down payment. That’s why I think real estate can be such a powerful investment, even if it’s your primary investment.
Need Personalized Help Finding a Home?
If you are ready to invest in real estate in Temecula, then I’m always here to help. Reach out in the way you feel most comfortable, via text, email, or call me at (951) 473-0390 or [email protected]. I’m always here to help!