Losses in the stock market, reduction in wages, corporate scandals, chaos in the job market, ever-changing retirement/401k laws, and possible recessions leave us with these critical questions:
Can I ever become financially-free?
How will I be able to properly fund my kids’ college tuition? My retirement?
I want to invest and put my money to work, but how?
We know that without investing, the effects of inflation and increasing prices over your lifetime will take a big bite out of your savings. Everyone is familiar with the stock market; you may even have money in a 401k or an IRA. However, there is a better way: Investing in rental property.
Investing and owning rental property is not as complicated as you might think and can easily help you to accomplish your goal of being financially free and having a well-funded retirement. There are also many benefits in rental property such as:
Cash Flow: The great thing about rental income is that you earn it 24 hours a day, seven days a week, 365 days a year, whether you are awake or asleep, working or on vacation. If you have a full-time job, the rent supplements your income. When you have enough of it coming in, you can quit your day job!
Appreciation (increase in value): According to the U.S. Census and national property sales statistics between 1940 and early 2010, the median home value has more than quadrupled over the past 70 years. Average annualized rate being at least 9%.
Better tax savings: No one wants to pay more in taxes. With rental property, you are allowed more tax write-offs/deductions than with other investments. Deductions can include travel, supply costs, auto expenses, office supplies, tax preparation, and depreciation.
Spirit of contribution: Being a property owner allows you to serve your community by providing quality housing.
But, wait! Question: If investment real estate is so great for building wealth and providing income, why is it more people choose stocks?
Simple. People believe that real estate investing requires too much knowledge and a lot of money to get started.