Investing in real estate in general is a good idea. Especially now while prices are so low. It makes perfect sense to find the right home to invest in and go for it.
1. Real Estate Markets Are Typically Slow to React - Even though real estate can have ups and downs, it is generally a lot slower to react than the stock market. For example, you won’t get up in the morning and discover that your real estate investment is worth ten or twenty percent less than it was yesterday.
2. Leverage. You can borrow money to buy real estate, whereas, generally you can not borrow money to buy stocks. You can control a large dollar value of real estate with a small amount of your own money by using loans and mortgages.
3. You Can Usually Buy Real Estate For Less Than Its Market Value. In many cases you can purchase a property for as low as 60 to 70 percent of the market value especially in this market.
4. Real Estate Offers A Lot Of Tax Advantages Through Depreciation. Real estate has two values, the land and the building(s) on the land. That can be split between the building itself and the land which is typically less. The government allows real estate investors to depreciate the value of the building in equal parts over its “useful life” which is defined as 27.5 years. So depending on the amount of the home and its depreciation, you can deduct that from your taxes each year.
5. Real Estate Markets Are Isolated Local Markets. Unlike the stock market which affects all investors equally, having a poor market in New York is not going to affect the great market in Great Falls real estate Great Falls, Montana real estate for sale. The Bakken oil boom reserve however is going to affect the Great Falls, Montana housing market over time in a positive trend.
6. As The Investor You Control The Value. As the investor you can increase the value of your investment property by making some modifications to the property such as adding a garage or replacing the carpet, paint, etc. With stocks or any other investment, the investor can’t do anything to increase the value of the investment.
If done correctly and wisely, Great Falls real estate is probably one of the smartest investments you could ever make. If you would like to get started in investing in Great Falls homes please contact me today. We have agents that specialize in finding the right homes for our investors.