If
you are looking into moving from a simple savings account to letting your money
work for you, Pensacola real estate
might just be the best investment option you could wish for. Although this is
not necessarily a glamorous industry, real estate is one of the best ways to
create wealth in the long-term. There are a few reasons why you need to invest
in rental properties.
Cash flow
One
of the best reasons to own rental property is the regular cash flow. Real
estate is a mostly passive investment, giving you the freedom to reinvest,
travel or build a business with the profits. The cash flow is also far more predictable
and stable than most other options
Tax benefits
The
government favors rental property owners over other entrepreneurs. You can
expect to pay less tax on Fort Walton
Beach real estate rentals than you would with most other types of
businesses. The tax benefits include lower tax rates and depreciation. In
addition to this, you are not required to pay for self-employment tax.
Loan repayment
If
done correctly, you might not have to go out of pocket to pay for your
mortgage. Your tenant does this in form of rent. Once the repayment has been
cleared, you own a significant asset outright. You can then choose to sell the
property or continue to rent it out.
Appreciation
Generally
speaking, the value of real estate goes up. Regardless of financial conditions
and other factors affecting the housing market, property values climb higher in
the long-term.
Protection from inflation
Inflation
is a reality of life and is largely unescapable. Owning a Gulf Breeze FL real estate can help to hedge against inflation. As
the price of everything goes up, so does that of real estate and property. Even
as the value of the property rises, the fixed-rate mortgage payment does not. This
means that cash flow increases even as the cost of living rises. There are few
business opportunities that offer this type of protection or comfort.
Control
Lastly,
owning a real estate investment is largely your responsibility, and puts
everything within your control especially compared to Wall Street and other
similar investments. It is much easier to identify problem areas and take the
appropriate action steps. If the market gets competitive, you simply need to
boost your advertising.
As
much as investing in real estate is a great idea, it is important to work with
an expert with insider knowledge on the best opportunities. The Scott Gregory Team is a perfect partner
whether you are looking for a residential or investment property. With insider knowledge,
great experience and unrivalled expertise, you will be working with the best in
the business.
Great Pensacola
Keller
Williams Realty Emerald Coast
8494
Navarre Parkway
Navarre,
FL 32566
Phone:
850-982-2039
www.greatpensacola.com
