With the right property, neighborhood location, and cash reserves, investing in real estate can be a great option. We have worked with numerous investors over the years and understand the proper steps to take when investing. Many investors are drawn to the ongoing payment of rental income, and as a long-term strategy, the ultimate sale of the property can fund a large portion of their retirement.
As with a stock that pays dividends, a properly selected and managed rental property will provide a steady stream of income in the form of cash flow. Historically, this percentage of return has exceeded that of dividend yields on average. Though there are downturns in real estate, generally those renting property will continue to do so without a corresponding decrease in rent amounts.
In the event you borrow money to complete a real estate deal, you will be required to pay it back with interest. As you pay down your mortgage, the equity in your home will increase. Combined with appreciation, the equity value of a home can steadily increase over time.