8 Reasons to Consider Investing in Real Estate

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Aren’t you tired of your money lying around in a savings account, sunbathing on a beach of missed opportunities? You can embark on the journey of financial independence by investing this money. Most Americans prefer investing in real estate, especially in distant and untouched parts of the country.

For instance, in Maui, Hawaii, even the palm trees are whispering real estate secrets. Maui saw a spike of 6.4% between 2010 and 2020, showing this island’s incredible potential for real estate investment.

Let’s explain some reasons why investing in real estate is the best way to multiply your wealth while you sleep. Hopefully, these eye-opening facts will convince you to enter the busy world of real estate.

1. Earn Easy, Passive Income

In the everlasting worlds of Warren Buffet, you have to find ways to make money while you sleep or be ready to work ‘till you drop dead. Everyone is looking for passive income sources these days. But the best way to earn money passively is to become a real estate investor before your retirement.

Let property managers and real estate agents do all the digging and heavy lifting while you just have to invest the top dollars and get a hefty return on this investment. Just make sure you’re investing in some of the best real estate markets in the United States, such as Maui. Statistics indicate that Maui homes were up by 20% compared to last year. So, look into different properties on this island.

You can do that by talking to the best Maui real estate agent online. Contact the brokers and look for an ideal home in different Maui locations to generate a decent stream of passive income.

2. Doesn’t Require A Lot Of Money

You may think that real estate investment requires a lot of money. In reality, you just have to find an affordable real estate investment opportunity and find financial assistance options. You can take out real estate loans with a decent credit score, become a part of a real estate syndicate, or work with brokers to co-own expensive properties.

3. It’s A Safe Investment Option

There’s a very practical reason why real estate is America’s favorite investment. Everyone’s faith in real estate’s potential has been restored after the housing bubble burst 15 years ago. Today, these are the reasons why investing in real estate will protect your wealth:

• You rarely see real estate investment lose its value with time
• Real estate investment isn’t vulnerable to inflation like fiat currency
• Unlike stocks and bonds, it’s a tangible asset that is always worth something
• Tangible assets, such as lands and buildings, continue to appreciate with time

4. Helps Plan For Your Retirement 

Inflation has prevented many Americans, even homeowners, from saving enough money to retire. It’s quite curious to note that most Americans believe they have to save up almost $1.3 million to retire peacefully. However, 11 out of 20 U.S. citizens are behind on their retirement savings.

You can now remedy this situation by investing in high-ROI real estate in exotic parts of America like Hawaii. It’s a great long-term investment and can be worth over a million by the time you retire.

5. You Can Lower Your Taxes Easily

Did you know you can put off tax bills smartly by leveraging your real estate investment? Some of these unique methods include the 1031 like-kind exchange, in which you sell a property to buy an equal one. You can find many other ways to get tax breaks because the government loves those who invest in real estate. For instance, you should expect:

• Property taxes
• Depreciation deduction
• Cost of repairing your property
• Cost of traveling to your property

Whether you own vacant lands, apartments, rental properties, vacation cabins, or industrial areas, expect massive taxation incentives coming your way.

6. Get Access To Real Estate Loans 

Nobody appreciates the potential of real estate investments more than bankers. That’s why you’ll get bank loans very easily for purchasing a property in even distant parts of America.

You won’t believe how nicely bankers treat people who take out real estate loans and have a very decent credit score. With a qualified sponsor (or a Maui-based real estate agent), you can get a fair loan in a few business days, often at a reasonable interest rate. 

So, choose the length of your mortgage smartly, and you’ll become a real estate investor in no time.

7. Real Estate Gives You Many Options

When it comes to “investing in real estate,” most people imagine looking for properties online and buying a high-ROI home. Well, that’s just one of many ways to invest in real estate.

Some real estate investors do what we call “fixing and flipping.” If you’re a fixer-upper kinda person, then buy a worn-down piece of property, renovate it, and sell it for a much higher price. This scheme is so popular that countries like Ireland will pay investors to fix and flip certain historical buildings. A lot of real estate investors have made entire careers out of reselling fixer-upper homes.

Also, you may consider investing in real estate investment trusts (REITs) or crowdfunding.

8. Create A Bright Future For Kids

What’s amazing about land is how it can be passed down through generations. You can secure your kids’ future with this form of investment and leave them your land in the will. That’s how your kids will have a solid start in their careers, especially if they plan to keep it for the long term.

Conclusion

This article explains eight reasons why you have to give your dollars a wake-up call and put them to work in the bustling world of real estate. So, real estate is the safest, cheapest, and most long-lasting investment opportunity for Americans. It continues to appreciate, gives you multiple tax breaks, and helps you retire peacefully. Moreover, you can now diversify your portfolio and even get access to real estate loans.

So, talk to an experienced broker and start looking for properties in Maui or other parts of the country, depending on your goals.