“Ninety percent of all millionaires become so through owning real estate”. – Andrew Carnegie
There is one fundamental principle that will alway ensure the value of residential real estate as an investment:
People Need A Roof Over Their Heads.
In fact, 30% of Wake County is dependent upon rental properties being available to meet their housing needs. This number is expected to rise due to the credit crunch and restricted mortgage guidelines. Even in the worst economic climates, the financial stability that monthly real estate investment cash flow provides cannot be challenged and it is difficult to find in other investment vehicles.
Real estate here in the Raleigh area is on sale and if Andrew Carnegie was alive today I am sure he would be buying houses and lots of them.
Here is why…
In 2009 1 out of 5 home closings in the US were by investors. 1 out of 3 people today depend on rental housing being available. As home prices have fallen over the recent years, rental rates have risen. An investors dream! Low prices, low interest rates and rising rental rates. Yes, millionaires are buying real estate today and you can too.
When purchased correctly, owning an investment property provides a more stable cash flow with higher possible rates of return in the future.
Traditionally Americans have chosen to deal in the stock market for investment income and retirement savings. However, real estate provides comparable rates of return, more cash flow, and better tax incentives than stocks. In the past 40 years, the yearly amount of home purchases more than doubled, and the median price for existing homes rose from $23,000 to $172,500, appreciating annually at an average rate of 5.32%. In adddition to possible appreciation, investors in real estate benefit from regular cash flow through leasing, greater ability to leverage their investments for increased returns, and tax benefits unique to real estate such as depreciation, expense deductions and 1031 exhanges. By being an investor in a struggling market you also have the opportunity to help comminities challenged by high rates of distresed properties and contribute to economic recovery.
Many Real Estate Agents Assume They Know Investors and Investor Needs.
The reality is most agents are merely directed by investors to perform real estate home searches or conduct transactions without really understanding the investors goals. As a Certified Investor Agent Specialist (CIAS) my team and I can help find opportunities in the greater Raleigh area real estate market to maximize your cash flow. Over the weeks to come I will share tips and best practices of savvy real estate investors so you too will know what the wealthiest people in America know. Real estate is a great investment!
If you have any questions or would like more information about great investment properties here in the Greater Raleigh Area please feel free to email me or call 919.235.0007.
Hope you have a great week,