Whether you just want to ditch your hated 9-5 job, need to build up a retirement nest egg, or want to get rich, real estate investment offers a good avenue for reaching those goals. The benefits, though, go far beyond the merely financial, but financial freedom is certainly possible. Let’s take a look, then, at 7 benefits of Tampa Bay real estate investment from a local agent.
1. Steadily Growing Income
The great thing about real estate investment in Tampa Bay is the potential for a steady and steadily growing income. This can be an especially achievable goal in areas with high demand for rental units, such as dense urban areas and university towns. The opportunity is there for growing an investment business and an increasing positive cash flow – even to the point where you have to hire a professional property manager.
2. Free Mortgage Payments
Well, not exactly, but it can feel that way with rental properties. You buy the properties, and then the rents you collect cover the mortgage payments, And then when you’ve paid off the note, the rents are all profit (after expenses). So keep you tenants happy and paying.
Another great benefit of real estate investment in Tampa Bay is that, usually, your investment properties will appreciate and increase in value over time. So your properties will wind up being worth more than you paid for them – a good reason to stick it out for the long haul.
4. Multiple Tax Benefits
Besides making you money outright, real estate investment can also save you a good amount of money owing to the tax benefits. Rental income, for instance, isn’t subject to self-employment tax, and investors can take tax deductions for depreciation, mortgage interest, insurance, property taxes, repairs, travel expenses, and legal fees. In addition, investors get lower tax rates for long-term investments.
5. You Call the Shots
Unlike your 9-5, you get to call the shots and make the decisions because you’re the boss. For those with an entrepreneurial bent, that kind of autonomy is liberating, but you also have to shoulder all the responsibility for mistakes and failures.
6. Long-Term Financial Stability
Real estate investment in Tampa Bay can also lead to long-term financial stability and security, which often means a worry-free retirement. First, it’s not a job you can get laid off from or phased out of, and it can bring in a steady flow of cash for a long period, meaning years and years. Also, because most properties are appreciating assets, your investments just become worth more and more. And although none of this is guaranteed, it’s still the usual course of things.
7. An Inflation Hedge
A related benefit is that real estate investing is also a hedge against inflation. As inflation gets higher, both property values and rental income follow suit and often increase significantly. As you know, this usually isn’t the case with a job, where wages often lag far behind inflation. So investors often warmly welcome inflation because as the cost of living increases, so does their investment income and cash flow.
These 7 benefits of Tampa Bay real estate investment from a local agent are by no means all of or the only benefits. The financial benefits only improve the further you go. The great thing about this business is that you gain knowledge and experience as you go along and learn while you earn. But if you want to reap the financial rewards and enjoy the benefits, you have to make wise and calculated investment decisions.