CASH FLOW & MORTGAGE PAYDOWN
Cash flow and mortgage paydown are two of the main benefits of owning an investment property. Cash flow is the profit you earn each month once you have paid all expenses. It is important to purchases a property that either has positive cash flow immediately, or will provide positive cash flow in the future. This surplus can cover things such as maintenance, repairs, and upgrades, while covering all operating expenses. Mortgage paydown is a huge benefit of owning an investment property, that doesn’t get talked about as much as some other areas. Mortgage paydown is simply the principle of the mortgage that gets paid down over time while you own an investment property. Managing both cash flow and mortgage paydown are essential to making your real estate investment financially successful in the long run.
WHAT MAKES REAL ESTATE A GREAT INVESTMENT
Investing in real estate offers a wide range of significant benefits. Firstly, real estate allows for rental income from investment properties providing consistent cash flow and mortgage paydown, which offers financial stability and a source of passive income. Real estate also has the potential for long-term appreciation, allowing investors to build equity and wealth over time. Real estate investments can also act as a protection against inflation, as property values and rental rates often rise with the cost of living. Diversification is another advantage, as investing in real estate is distinctly different from the typical investments such as stocks or bonds, reducing investment risk. Overall, the combination of cash flow, mortgage paydown, steady passive income, potential appreciation, inflation protection, and diversification, makes real estate an attractive and well-rounded investment option.
APPRECIATION
Owning an investment property comes with the significant benefit of appreciation. This refers to the property's increase in value over time. Appreciation can result from various factors, such as improvements done to the property, the overall development of the neighbourhood, or the historic trend that real estate tends to increase in value over time. As the property appreciates, its market value rises, which can allow the owner to build equity and potentially sell the property for a profit. It also offers the opportunity for refinancing, and using this income to purchase further investments. Appreciation is a huge benefit of investing in real estate, and a main reason why real estate is such a reliable tool for generating wealth.
CURRENT INVESTMENT PROPERTIES
For specific information on any of the following properties, or how you can achieve your investment goals through Real Estate, contact me today.
JAKE PATERSON
Buy. Sell. Invest. Lease