Paul Haarman highlights the advantages of investing in real estate

July 5, 2021

Most people take the conventional route for their investment options, such as mutual funds, stocks, and bonds. It’s because these options usually guarantee a 5 to 7% return. Simultaneously, no investor has much control over the way the stock market functions.

On the other hand, today, you have passive investment choices that enable you to have some control and increased return. And one such option is real estate investment. It’s also the best example of an asset that provides many income streams.

According to Paul Haarman, real estate can result in passive earning for an investor in many ways. It includes:

  1. Cash flow

The concept of cash flow is simple! When you buy a rental property as a real estate investment, typically, tenants pay rent monthly. The rent expense is more compared to the mortgage payment per month. And the difference in the mortgage payment and rent generates an immediate and consistent cash flow.

2. Appreciation

Selecting the apt market for investing is essential for long-term, successful real estate investment. So, before seeing the properties, it is necessary to look at a community's potential growth and check others investing in the same market. The metros are where 50% of Fortune 500 and 10% of Fortune 1000 companies have their headquarters. Hence, the metros have a flourishing health care industry. It is attracting people at a higher rate and has added more residents in recent times.

3. Tax write-offs

It’s interesting to know that there are several probable write-off scopes in real estate investments. And one of the methods that go underused is 1031 Exchange. It's a purchasing choice that enables you to switch investment properties and avert paying taxes on the sale's earnings. That aside, Paul Haarman says that there are the write-offs for the property management and travel expenses to and from a property, mortgage interest, and maintenance.

4. Inflation-profiting

Usually, people cringe when they hear the word "inflation." However, for real estate investors, it can widen the possibilities of return. Compared to other types of investments, traditional loans provide a fixed interest rate that secures your bottom line. And as the market value grows with time, the investor has the scope to bump the monthly rent to double and maintain the return. Also, the loan amount won’t change to highlight inflation-managed value.

Hence, real estate investments don't just provide investor control but also creative means to enhance income. Passive investing implies that the property gets transferred to an ace management company to become easy to invest in another state or city. Turnkey property investments can result in instant cash flow and put aside the trouble of finding quality tenants and navigating maintenance.

Today, you will come across several real estate scopes where you can invest. The majority of the investments get considered as a "one-stop-shop." However, whenever it is done with real estate, a property can be a passive earning catalyst and generate more prospects.


Categories: ,  
Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
April 16, 2024
Protecting Your Face with Sunscreen and Nourishing Your Hair with Castor Oil

When it comes to maintaining healthy skin and hair, two products that have gained popularity for their effectiveness are sunscreen for face and castor oil for hair. Sunscreen is essential for protecting your delicate facial skin from the harmful effects of UV rays, while castor oil has been praised for its ability to promote hair […]

Read More
April 16, 2024
How to Revamp Your Patio Space for Summer Outdoor Entertainment

  Outdoor entertainment is popular among American homeowners, specifically during spring and summer. According to a recent article published in Forbes, modern outdoor living spaces go beyond centers to true outdoor rooms. New products and ideas such as fire pits, pizza ovens, outdoor movies, and games are enhancing the outdoor ‘gathering story’. Statistics show that […]

Read More
April 16, 2024
Spotify Premium APK: Compatibility with Different Devices

In the ever-evolving world of music streaming, Spotify stands out as a behemoth. Its vast library, personalized playlists, and user-friendly interface make it a favorite among music lovers worldwide. While the free version offers a plethora of features, the Premium version elevates the listening experience to new heights with ad-free music, offline listening, and improved […]

Read More
Welcome to Urban Splatter, the blog about eccentric luxury real estate and celebrity houses for the inquisitive fans interested in lifestyle and design. Also find the latest architecture, construction, home improvement and travel posts.
© 2022, All Rights Reserved.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram