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5 Reasons to Invest in Real Estate

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In the last two decades, real estate has outperformed the stock market at a ratio of 2:1. Real estate has continuously been ranked as the best way to invest money not needed for more than 10 years. So why aren’t more people taking advantage? Here are the 5 top reasons to invest in real estate.

5 Reasons to Invest in Real Estate

Immediate cash flow

Once you buy a property and rent it out, you are receiving cash flow within that first month, and every money after that. If you buy in a hot market, you’re able to use the cash flow to pay back that mortgage as well as use the additional funds for repairs, paying a property management company, or any other house related expense.

Appreciation

While appreciation is largely dependent on property, location and economy, the bottom line is that the US population is growing and the need for housing continues to increase. By way of supply and demand, your home’s value will increase over time. For example, since the inventory of homes in Western Washington is in a shortage, buyers will be willing to pay more for your home since there isn’t much competition.

Equity

If you make paying off your mortgage a priority, the amount of equity – or the amount of house you actually own – grows quickly. If you pay more toward your principal, choose shorter loan terms, and focus on home improvements, you can speed up the pay off process. By paying more toward your principal, the faster your build equity, even if your home is appreciating slowly. By choosing shorter loan terms, you are eliminating the interest rate for the years you aren’t paying a mortgage. For example, a 15 year mortgage is more per month, but over time you actually save a significant amount since you aren’t paying interest on the last 15 years. Finally, by focusing on home improvements, you increase the value of your home and narrow the gap between how much it’s worth, and how much you owe.

Tax breaks

Investing in real estate can come with tax breaks, which makes this one of the top reasons to invest in real estate. Mortgage interest, operating costs, property taxes, and insurance are among the areas you’re able to deduct from your taxes. You’re sending less money to the IRS, and increasing your cash flow.

You don’t have to be the landlord

If you buy an investment property with the idea of just wanting the monthly income without doing the maintenance, a property management company can help you. When you hire a property management company, they can take calls about leaky faucets and drafty windows. Yes you’ll be receiving less monthly income since you’ll have to pay the property management company, but you’ll have much less to worry about. This is an especially good idea for those who buy a rental out of state.

You may also like: Tips For Millennial Homebuyers

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5 Reasons to Move to Washington State

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With a booming job market paired with a temperate climate, it’s easy to see why Washington State is a popular state to live in. According to USA Today, Washington State was ranked the 4th fastest growing state in 2019. So let’s take a look at some specific reasons to move to Washington State.

Jobs

With Amazon, Microsoft, Starbucks and Boeing all headquartered in Seattle, it’s understandable why the Seattle, Tacoma, Olympia area is the employment engine for the state. Washington State is also unique in that the Eastern side of the state, opposite Seattle, is one of the nation’s largest agricultural producers, especially for seafood and fruits such as apples and cherries. That’s a lot of employment opportunities, which makes jobs one of the biggest reasons to move to Washington State.

Water

If you move to Western Washington, you’re sure to run across the Puget Sound while you’re there. Cities such as Seattle, Tacoma, and Bellevue are located right on the water so you’re bound to see a view while you’re there. While the water is pretty cold during the fall, winter, and spring months, during the summer you’ll see families gather round the many lakes and bays the state has to offer and remains one to the top reasons to move to Washington State.

Outdoor Activities

With three national parks within state boundaries – Olympic, North Cascades, and Mount Rainier, Washington is a mecca for those who enjoy the outdoors. Hikers flock to popular hikes such as Mt. Si., Rattlesnake Ridge, and Mailbox Peak, whereas those who prefer water sports are seen sailing, kayaking and fishing throughout the state.

Green

Washington State prioritizes sustainability and frequently ranks in the top five in various categories of the most environmentally friendly states. Especially in Western Washington, you’ll see an emphasis on recycling and composting as well as mass transit options such as the Light Rail and Sounder. In 2015, Washington State was ranked as the nation’s most bike friendly state and also hosts the Seattle to Portland (STP) bike race every year.

Diversity

With Seattle being a melting pot of different cultures, you’re surrounded by diversity. You’ll find yourself learning about new cultures on the regular and trying different foods. The row of restaurants adjacent to the University of Washington, informally known as the Ave, hosts over 50 restaurants of 30 different cultures. The diversity in this state inspires creativity and drives innovation statewide.

You might also like: 7 Steps to Buying a House in Pierce County.

 

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