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Looking for Safe Investments with High Returns? Try Real Estate Investing

 

Finding that one investment opportunity that hits all the right spots can be quite difficult for real estate investors. Many people spend their lives looking for that investment opportunity that will be their big break. The key is to always look for safe investments with high returns. However, this is not always attainable through the various types of investing. Keep in mind that real estate has made more millionaires than any other industry. We’ve gathered a few insights on why you should go for real estate investing when looking for safe investments with high returns.

What makes real estate investments safe investments with high returns?

Real estate appreciation

When you buy real estate properties as an investment, you’re assured one thing at least: Your property is destined for appreciation. Of course, real estate appreciation is the main motive for real estate investors who are taking buy-and-holds as an investment strategy. In the simple case of buy-and holds, a real estate investor can buy a property at a certain time, then rent it out and make payments on its mortgage. What happens after the mortgage is paid is what drives real estate investors more and more into it. The real estate value will increase, and your asset will yield more when you refinance it.

This should open more doors for you to start real estate investing on a bigger scale than you already are. After all, when looking for safe investments with high returns, don’t we all dream of that one investment strategy that will give us more than we put in?

Not to forget that the ever-increasing real estate values make it very enticing for real estate investors to go for the cheaper alternative of fix-and-flips as a real estate investment strategy. Just make sure you know what you’re getting yourself into. For more solid information on fix-and-flips, read this blog post: 5 Tricks to Save On Fix-and-Flips.

The tax benefits of real estate investing

You can get tax deductions on almost every aspect of your real estate investing business. To be exact, real estate investors can make use of these deductions with their investment property mortgage rates, and rental income. This protects your initial investment while allowing you to keep more cash in your pocket. Most importantly, real estate investors are able to deduct expenses, maintenance costs, and even depreciation. There are plenty of tax benefits waiting for you to make use of.

To be clear on the matter, as a growing real estate investor, you must have a competent accountant to do your taxes. Yes, you might say my cousin who just graduated can do it for me for free. But when it comes to actual cash flowing in and out of your pocket, you want to make sure you’re getting your money’s worth through making money in real estate.

To get a well-rounded idea about the tax benefits of investing in real estate, read this blog post: The Tax Benefits of Real Estate Investments.

Real estate is a physical asset

When it comes to putting your cash into any investment, wouldn’t you want to be able to touch it, feel it, and walk through it? When it comes to safe investments with high returns, real estate tops the list with tangible assets. This makes the value associated with the physical structure of a real estate property. You can see where your money is going, unlike the many other investment fields. Additionally, real estate investments leave you feeling safer than other investment options. Let’s take the stock market as an example. When investors buy stock, there’s very minimum tangible proof that you own stocks. Only a few papers and emails can prove that.

If you’re debating whether you should go for stock or real estate, read this blog post: Buying Stocks or Real Estate for Investment Purposes: The Better Option.

Real estate prices don’t fluctuate as much as other investment options

Steadiness in values with low risk investments is a must. Real estate investing offers just that. Real estate investments are considered safe investments with high returns for this reason. Looking at the past 100 years in the US real estate market, you can see that the values are increasing moderately. Of course, one must recognize that the prices of your real estate property will fluctuate along with the local housing market it’s located in. Keep in mind that as long as you are holding on to the property, you cannot be affected. That includes any real estate market fluctuations.

In addition to that, the factors that affect the real estate value of your investment property are more defined and controllable. Compare that to the many factors that influence the stock market and you’ll know that you’re getting your safe investments with high returns through real estate investment properties.

How to ensure safe investments with high returns in real estate

Projecting future numbers in real estate investing has gotten a whole lot easier than before. Real estate investors no longer have to analyze spreadsheets to determine the current and future value of their potential real estate investments. Instead, technology now can do all of it for you. All you must do is click a few times and the investment property calculator can just calculate everything for you. In any case, an investment property calculator can calculate the cash on cash return, capitalization rate, and even cash flow for you. No more spreadsheets needed!

Of course, with the many technological tweaks to this technology, Mashvisor’s investment property calculator is an automated calculator that tells you what you need before making that big real estate investment decision. If you follow the path that the investment property calculator gives you, you will get to a state of safe investments with high returns.

To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.

To conclude,

These were our reasons why real estate is considered among the safe investments with high returns. Just make sure to get an encompassing idea of any real estate property you acquire. So, start moving and make the money move through real estate investing.

If you have any more insights on safe investments with high returns, please share them with us in the comments section.

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Ahmad Shukri

Ahmad is Content Writer at Mashvisor with a degree in marketing. He enjoys writing about everything related to real estate and especially the top markets for investment properties.

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