With housing market showing signs of improvement, opportunities are in abundance for purchasing a second vacation home or investment property. Whether you are a seasoned investor or wish to purchase a second property to act as an investment, there are many advantages in doing so.
Following are 3 key advantages of investing in real estate:
1. Control
Investing in real estate presents many advantages over other forms of investing. One such advantage is the control gained through investing in real estate. Many investments give the investor little to no control, however, with a tangible real estate investment, the investor has the control. While external market factors will always play a role in any investment, with real estate, the operational decisions aren’t out of reach.
Other investments only offer reactive control, that is buying or selling when market conditions push for a decision. However, real estate investment represents proactive control, giving the investor the ability to manipulate operational conditions in order to maximize rent in reaction to market or other conditions affecting the property.
2. Monthly cash flow
An investment property represents a semi-passive income stream, depending on how hands-on an investor is with a property or whether a manager is present or not. A monthly cash flow allows for further investment and can allow the investor to become financially free and able to pursue future ventures. An investment that consistently yields a positive net monthly cash flow is one that can be a springboard for future investments and opportunities.
3. Stability and Predictability
Amid economic downturns and tough economic times, rents tend to remains table if not slowly rise over time. A successfully managed property will give the investor an idea of how much they will be collecting year after year. A property that appreciates while experiencing rising rent will both hedge the negative effects and act as a barrier against inflation.
If you are in the market to purchase a new home, investment or otherwise, today’s market environment is very promising and offers many opportunities. I would be glad to help you.