Investing in real estate is one of the most profitable ways to use your extra money. Real estate investment is a relatively safe way to invest because property values tend to appreciate over time. Real estate property is one of the most expensive purchases you’ll make, but it is also one of the only purchases that will grow in value.
Real Estate or the Stock Market?
Stock market investments often grow at a higher rate than property appreciation, which can make them a more visibly rewarding investment. However, this doesn’t take into account that real estate investments bring in consistent cash along with the growth in value.
Unlike other investments, real estate investments allow you to borrow money to put into the initial investment, while using the income from the property to pay off the mortgage. There is consistent need for housing, so you’ll never have to worry about that aspect of your investment.
The Best Places to Invest
Though real estate investment is typically a good option, there are some areas that may be better to invest in than others. For example, Florida is a great option for real estate investment. There is a much lower median cost for purchasing property in Jacksonville or Orlando than the average cost for the country.
Phoenix is another great area to purchase a rental property. The population in Phoenix increases consistently, ensuring that there will always be a need for housing. Phoenix, Arizona is a profitable location for real estate investment with the average median home price at $239,000 that is fairly close to the US median of $216,000. In addition, there is a very high demand in house rentals due to the increasing population there.
Real estate is a valuable tool in your investing toolbelt. Though there are many ways to invest extra money, real estate is one of the most consistent and reliable methods for investing. To learn more about the benefits of real estate investing, contact us at Keyrenter today!
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