Besides the closing cost fees and seller fees that come with selling and buying a home, here are a few reasons why investing in real estate will help you long term.
- Always appreciates long term. People get equity from real estate increasing over time. Protects your money from inflation.
- Can outperforms stocks. If the last few years has shown anything, people want homes, home prices have increase more than 20%+.
- Less risky and volatile. Unlike stocks, it doesn’t swing as rapidly up and down, and has shown growth over years.
- Guaranteed passive income. You can rent out a room, or your entire property, giving you extra income. AirBnb allows that option as well.
- Able to control and negotiate price. When buying, you can negotiate on fees, discount, over points and interest rate with your lenders. It’s harder to do in a sellers market – when buying a house with over bidding, but there are tactics to help determine what you pay overall.
- Tax advantages. The government provides tax incentives and allows you to deduct interest and property taxes on your home, especially the first few years where you pay more upfront.
- Less risk = More reward. Not including the financial reward of owning a home or multiple homes, it’s one of those things you can enjoy.
- Always in demand. Land is more scarce in America with less homes being build, people need a place to live and desire to own a home.
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