The Best Type of Investments

There are many ways a person can choose to make investments with their money. However, over time there has been no method of investing money that has been proven to be as beneficial as real estate investing. Unlike the stock market, people who invest in real estate have more control over the success or failure of their investment. The benefits and perks of investing in real estate are plentiful to those who choose this form of venture.

Investing In a Home vs. Renting?

When a person pays rent for a property, that person pays money each month in order to reside at that property. That is it! There is no return on the money spent. There is no return on the property once the person decides to end their residence there. Many individuals fail to ever reach a good financial status because of these types of financial decisions.

When a person decides to venture into home investing, they see a great return on their money during the time of their residence in the home and after. You see, for every mortgage payment a person makes during the year that mortgage payment can be used as a tax write off when filing their federal and state income tax returns. And if there are any repairs made in the home, every dollar spent for the repairs can be used as a write off as well. And if a person decided to no longer reside in the home, they can sell the home and reap profits after the remainder of the mortgage is subtracted from the sell. When a renter decides to change residences they walk away with nothing.

Another key factor to consider is that after 15-30 years of paying rent without investing in property, a renter will continue to pay high amounts for living expenses. As opposed to a home owner: who after 15-30 years will eliminate a mortgage and decrease their cost of living expenses dramatically. When it comes to money spent for room and board, there is no question that home investing is the more logical and lucrative path to take than renting.

Other Benefits of Real Estate Investments

Many individuals invest in real estate for the sole purpose of profit. They invest in homes and commercial properties with the intent to rent and lease them out to others. So if a person invest in a house and is paying a mortgage rate of $800 monthly, and they rent out the premises for $1,300 monthly (not including utilities) this investor can see a profit of $500 monthly. Landlords can also write off mortgage payments and repairs to their property in order to receive tax breaks at the end of the year on the money made. Landlords can earn thousands of dollars over time renting out property. They can then increase their profit margin once they decide to sell the property after years of earning money from it.

It’s easy to see why real estate investing is the best way for a person to invest their money. With hard work and wise decision making, a person can reap great financial benefits from this form of investing. For more real estate investing information, go to www.actionteamcoloradosprings.com!