Investing in Real Estate | Why or Why Not?
Investing in real estate is one of the primary investments that we make that can greatly impact our financial security and future. It has many advantages and is something that we all "know about" but most do not know enough to fully take advantage of a the full potential. Many are able to purchase a home they live in and that is, in one sense, investing in real estate. While this is a positive step in the right direction it is not really the investing in real estate that I'm talking about.
Those who want to take full advantage of investing in real estate should consider buying a home that they rent out to a tenant who in turn pays them rent. This rent pays the mortgage and other costs and overtime provides both net worth and monthly passive income. Hardly anything without huge upside doesn't come with some proportionate amount of risk so it is extremely important to take your time and do it correctly.
Benefits of Investing In Real Estate in Lancaster, PA
1. The local market is conservative in nature and historically has less downside risk than many other markets.
2. The value of your asset goes up historically over time and has recently had a major correction.
3. Interest rates are so low that you can more easily create positive cash flow.
4. If you don't want the hassle of handling the day to day activities you can hire a Property Management Company.
5. Other than the initial investments of purchasing the home it is possible to not put a dime into it from that point on.
Drawbacks of Investing in Real Estate in Lancaster, Pa
1. You might not see the huge gains during excellerated growth times as you might in other places.
2. The investment can be time intensive.
3. The investment is not consider "liquid" because it could be difficult to sell the property quickly if you needed funds.