Previously, we’ve talked about what to look for in the perfect investment property when you’re touring homes with a real estate agent, but we haven’t touched on why real estate is such a good investment to begin with. In fact, many individuals are jumping into the property search race in order to benefit from the many positive returns that you can be privy to when you purchase an investment property to rent out. Don’t just take our word that rental properties are a great investment, consider the many reasons that you can see a great return on your investment when you work with a Berkshire Hathaway real estate agent to expand your wealth.
Unlike money market accounts and certificate of deposits, real estate tends to have a higher return on investment. In fact, for being a relatively non-volatile investment, real estate has a great rate of return. According to data collected by National Council of Real Estate Investment Fiduciaries (NCREIF) over a ten year period, “private market commercial real estate returned an average of 8.4 percent.” This growth even included the time period with the economic drop that occurred in 2008. Real estate is a more stable option than investing money in the stock market and provides greater returns on even just the property itself than you could find in other investment opportunities.
What a lot of individuals appreciate about real estate is that it is a tangible asset. You can utilize the property as financial leverage and you end up with an actual item of value in your possession. Many financial institutions value real estate because they eliminate the middlemen that can drastically change the value of an investment, such as with stocks and bonds.
Real estate tends to be recommended for individuals who need to add some variety to their investment portfolio. Any good financial advisor will tell you that your investments should cover a wide variety of sources in order to provide some protection from potential market downturns and other events. Because real estate is an investment opportunity that is not governed by the same factors as many other investments, it’s a great way to help provide some security across your investments.
Santa Fe is a great option for your property search. It’s a thriving community where home prices are reasonable. You can get a better value for your money and still be able to set a reasonable rental price when you purchase an investment property in the Santa Fe area. The population has steadily grown over the last 25 years with no sign of slowing down now.
Start your property search today with the help of real estate experts at Berkshire Hathaway HomeServices. Whether you’re looking for a forever home for yourself or you’re searching for the perfect property to add to your investment portfolio, we’ll help you find the property that you need. Contact one of our agents today to sit down and get started on your search! Call now!