Finding a way to invest without too much risk? Real estate is your best option. Not only does real estate give competitive returns and an attractive income source, it also helps you enjoy tax benefits. Now is the best time to invest in real estate—while mortgage interest rates are low and the real estate market is thriving. Here are the reasons why you should put your investments in real estate:
Mortgage interest rates are low
For many, this is the best reason to invest in real estate now. American mortgages are dipping at their lowest in the last three years. According to the August 28, 2019 results of Bankrate’s weekly lenders' national survey, the 30-year-fixed mortgage rate has fallen to 3.79 percent. This figure will only drop lower as bond yields continue to fall.
When you chose a stable, growing market such as Simi Valley Real Estate, you can expect competitive returns by holding on to your assets over a length of time. The value of Simi Valley Real Estate is steadily growing during the past three years and is further expected to grow for the next few years as the infrastructure and economy in the city continues to improve.
Stable source of income
Investing in real estate is an attractive way to generate income. According to a report, about 80 percent of the total U.S. real estate return from 1977 to 2007 was generated from rental income. This makes real estate less volatile and more stable than those investments which only rely on capital value returns.
Highly tangible asset value
Real estate is backed by a high level of brick and mortar—your land and your home, which will always have value. On the other hand, stocks can turn into trash if stock values dip to zero and a new car only depreciates over time when newer and more advanced models hit the market. You can also get insurance to protect your assets from unpredictable incidences.
It is a good long-term investment
Among other kinds of investment, real estate is still the best for the long term. How many years can a company survive? Studies are saying they are dying younger. The average age of an S&P 500 company is has gone from 60 to 20 years, and the trend is accelerating due to disruptions in technology. Meanwhile, comparing real estate prices from 30 years ago, the value only increases over time regardless of financial crises.
Diversify your portfolio
Diversifying your assets is a way to balance the risks and rewards of your investments because you spread out the risks. Real estate can serve as a safe and stable asset to mitigate the risk in your portfolio. Even if your other investments went to the bubble, there would be opportunities to recoup your losses.
Enjoy tax benefits
Another attractive benefit of owning real estate is it comes with numerous tax benefits. This includes deductions on mortgage interest, property taxes, operating expenses and costs, insurance, and depreciation even if your property gains value.
If you are interested in investing in real estate, Simi Valley is a good choice. The Simi Valley Real Estate Market is currently at an upward trend as the area continues to gain popularity for homebuyers and investors alike. Simi Valley is a scenically beautiful city in Greater Los Angeles which boasts some of the finest recreational facilities, shopping centers and restaurants. For help, contact Lefton Realty Group.