With the 2008 housing market crash, many investors and entrepreneurs are understandably skittish about including real estate in their portfolios. However, as Minneapolis's expert house finders at EXIT Realty Nexus explain, the market is steadily recovering, with home values rising across the country. In addition to a fairly reliable rate of return, owning a rental property has a few other benefits that make it a smart investment.
Here are just a few of the reasons you should consider putting your capital into real estate:
- Leverage Your Capital: Unlike other investment vehicles, the real estate industry makes it easy to use the bank's money while you initially supply just the down payment.
- Tax-Free Growth: While the cash from a rental property might be taxable, you can cash in on the future appreciation of the property using any number of tax deferment strategies.
- Tax-Free Income: If the property inside your rental home depreciates or you make mortgage payments, you can deduct those losses, usually resulting in completely tax-free cash flow.
- Long-Term Savings: Even if you aren't a professional real estate investor, buying a rental property is a significant long-term savings vehicle you'll likely be glad you made. If your 401k contributions haven't added up or you lack enough savings, real estate can be a valuable way to build income and wealth.
If you've been considering a career in real estate, now is the time to take advantage of the quickly growing market. EXIT Realty Nexus offers the best training in the business, with real estate leadership opportunities for newcomers and experienced agents alike. Visit their website now to learn more about their innovative business model and incredible benefits, or just call (612) 281-1033 to discuss your future today.