There are many reasons why buying Bluffton real estate might be one of your smartest investments.
For starters, the ROI (return on investment) is better. Why settle for a 1 percent return on your investment from your bank when you can get 9 or 10 percent from a good rental property?
These days, when managing your money, it is important to: invest in income streams that give you a positive cash flow, leverage your debt, control your financial assets, and prepare to deal with inflation.
Inflation is defined as a general increase in prices and decline in the purchasing power of money. Simply put, your money just doesn’t go as far as it used to.
While we might not be in an inflationary market right now, the cost of goods and services is going up. We are paying more for food, utilities and insurance, just to name a few.
So earning more money is the way to go, and I believe that it’s a good idea to have commercial or residential rental real estate assets in your investment portfolio.
Here are five reasons why buying Bluffton real estate is a smart investment:
- Positive cash flow. A big benefit of income-producing properties is an ongoing income stream that pays for the asset and is higher than bank earnings.
- Leverage to increase asset value. Investing in the right property allows you to buy more assets with less money, multiply asset value, and increase equity as loans are paid down.
- Guard against inflation. Real estate investments have been proven to be a hedge against inflation, with property values rising as inflation occurs.
- Favorable tax advantages. Tax benefits for real estate owners include: mortgage interest deduction, depreciation acceleration, and deduction of expenses related to managing the investment property(s).
- Capitalize on physical financial assets. Income producing real estate is an asset that has meaningful value. Both land and building have value, and the income that is produced has value to current and future investors.
While the above reasons for investing in real estate make sense in many geographic areas, they especially hold true here in Bluffton. That’s because Bluffton is growing, real estate values are rising, and the rental market is very strong.
Larry Stoller is a real estate consultant and advertising executive who loves living in Bluffton and helping real estate agents and sellers get homes sold.