As mortgage rates drop to never before seen numbers, you may wonder how to make the most of this opportunity. If you already have a great rate for your home’s mortgage or have it paid off completely, investment property may be a safer bet than the stock market, and one that can bring you tax benefits and a steady flow of income.
Let’s look further into why now is a great time to buy an investment property.
The most obvious benefit of investing in real estate right now is the historically low interest rates. Interest rates began to drop between the first and second quarters of 2020 and have now reached the lowest rates on record. Fixed-rate mortgage options
ensure you will benefit long term from the current historic lows.
Diversify Your Portfolio
With the current instability of the stock market, you should be looking at diversifying your portfolio. If you are already invested in some stocks, bonds, and other securities, real estate offers a great way to do that. The idea is that by blending a variety of assets, an investor can minimize the exposure they have to risk. An investment property will help you increase your equity either by appreciation, cash flow, or both, while the stability of the real estate market will keep you safer in the event of a stock market crash.
Once you invest in real estate it is generally possible to get tax benefits, such as costs becoming deductible business expenses, writing off your mortgage interest and more. It is always best to discuss these possibilities with a tax expert to make sure you are benefiting as much as possible.
Regular Cash Flow
A rental property will also bring you the benefit of regular cash flow. This addition to your annual budget can go towards savings, vacations, or maybe even a fund for growing your real estate investments. If you enjoy owning a rental property you might even consider investing further and changing careers once you expand sufficiently.
Our experienced mortgage bankers can help you to start investing in the real estate market with loan options to meet your financial needs. Browse available properties on our Home Search platform and get a cash reward of 0.5% of the value of the property you purchase when you work with one of our trusted real estate agents. Search homes now!
At Resource Financial Services, we love making people’s dreams of home ownership a reality. Visit us online today at rfsmortgage.com to get started. Then contact a Resource Financial Services mortgage banker at 877.797.4545 to discuss your mortgage options and your financial goals. Let us walk you through the process and welcome you home to a better mortgage.
Comments are closed.