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Safe Long Term Investments |
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As Wall Street tumbles and the Dow Jones Industrial Average falls many investors are on the look out for safer investments. With the fear of market volatility in the future many market experts are encouraging their clients to invest in something other than stocks. Their advice? Buy a house or a 2nd homeon the beach! Sounds good to me! I'm more than willing to invest in a house that would protect me from inflation, with the potential to appreciate in value. Relaxing by the waves at my beach house wouldn't be that bad either. Now is a great time to invest in real estate. There are plenty of incentives out there to entice home buyers to buy, buy, buy. To begin with, home prices are still down in many areas of the country with mortgage rates at historic lows. Need more convincing? The recent debt deal is also likely to keep mortgage rates low for a little longer. Once the details of the debt deal are finalized this incentive could be history. Major hurdles that buyers will continue to face will be making the down payment on a house, having good credit, and a stable job. According to Greg McBride a senior financial analyst at Bankrate.com, "If you're financially prepared to do so, it'sa great time to buy a house. He also mentioned, "Affordability is tremendous,and if you're in a position where you have the financial security that others are lacking, you're in a great position to grab a good deal." Rebecca Hall, a financial planner in Reston, VA said several of her clients have decided to invest in real estate over putting more money in the stock market. She said people don't see the real estate market as volatile and stressed the importance of seeing real estate as a long term investment. Resources: Josh Law – Tom Barnum – Pete Laver AugustaRealEstateTeam.com RockinghamRealEstateTeam.com Augusta County, Rockingham County, Staunton, Harrisonburg, Churchville, Craigsville, Crimora, Deerfield, Fishersville, Fort Defiance, Greenville, Lyndhurst,Middlebrook, Mint Spring, Mount Sidney, Mount Solon ,New Hope, Sherando,Spottswood, Steeles Tavern, Stuarts Draft, Swoope, Verona, Waynesboro, & Weyers Cave | |
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INVESTING: Stocks vs. Rental Property ... What is in you future? |
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I will say it up front ... it is a good idea to be diverse when planning for your future and investing your hard earned money...now that you have heard that again lets go a bit deeper in to investing in stocks verses a rental property…it just might not be a bad move to make for your portfolio! Say you have $20,000 to invest…(even though you might be able to buy something with less money) STOCKS RENTAL PROPERTY $20,000 cash investment $20,000 $20,000 value after investment $200,000 $2,000 10% gain on value $20,000 none unless you are buying the stock in a retirement account tax benefits all interest, expenses, utilities, etc., company bankruptcy, most likely you loose all your money and claim it as a loss for tax write off personal hardship (bankruptcy or house fire) you have insurance on your property and it is rebuilt, you are compensated for loss of rent during the rebuilding process a long time for recovery and little or no gain on your value when or if it economic hardship most people need a place to live and your investment is being paid off by someone else My Opinion… Be creative with your portfolio, look into buying a rental property you might be surprised how much faster you can build your wealth and nest egg for the future. In 30 years even if the housing market does not increase 1% (even though that is highly unlikely) you still have a house that was paid for by someone else, you will have received 30 years worth of major tax benefits, and the toughest decision you will be faced with is … 1. Do you sell it and take that $200,000 or more to the bank?
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Rockingham Real Estate Team
Coldwell Banker
Funkhouser Realtors
540-421-7447
rockteam@cbfunkhouser.com
Licensed in the
Commonwealth of Virginia
