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Why Real Estate Is A Good Investment

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Tuesday, June 7, 2022   /   by Justin Watson

Why Real Estate Is A Good Investment

Why Real Estate Is A Good Investment

120,411 Real Estate Investment Stock Photos, Pictures & Royalty-Free Images - iStock

In todays post, I'll show you 10 reasons why real estate is a good investment.

Hi my name is Justin with RE/MAX Edge. I am a top 4% selling agent here in Hampton Roads. Recently being honored as "Agent of the year" with RE/MAX Edge. Having sold 100's of homes, I can say Ive seen just about everything. Okay, enough bragging...


Lets Dive Right In!

1. STORED VALUE 

Real estate is one of safest forms of investing because prices rarely go down. If they do, it's usually only for a limited amount of time.
 12 Great Real Estate Picks to Stuff Your Stockings With Now 

In comparison to fiat dollars, the value of said dollar decreases as more is printed. That is not the case with real estate. The more homes that are built will not decrease the overall value of said property.


2. Natural Appreciation

Populations are constantly increasing and people are always needing somewhere to live. These factors drive demand for housing which in turn increases the value of the property owned. 

"The average home, everywhere in the world, appreciates in value by 3% per year."


Hampton Roads investing is amazing as we have seen the median sales price increase from $284,000 in May 2021 to $316,000 as of todays post. 
Virginia Beach Real Estate


3. Forced Appreciation

 Updating kitchen, remodel bathrooms, fix roof...These are all examples of tools that force the value of the property to go up. This is the main reason why the house flipping industry exists. I help my clients find properties in bad shape or even undervalued. 


For real estate investing, check out these homes for sale in Virginia Beach under $150,000.

4. Tax Benefits

Real estate investors pay less tax than almost any other citizen. The government tends to favor these types of investors. Real estate investors (developers)

Passive income is a great way to earn money without having to actively work for it. Collect passive income while you enjoy your life Instead of spending your day working for someone else. Here are some ways you can put you passive income to use:
•Fund your children’s college funds
•Set up and build your retirement fund
•Pay off your debts
•Achieve financial freedom
•Build your savings
2,826 Passive Income Stock Photos, Pictures & Royalty-Free Images - iStock

6. Market Cycles

Real estate investors love it when market prices go down and property values drop. While people freak out, experienced investors come in and buy property at lower costs & as many as they can. 

7. Access to funding

Banks provide credit if your employed and can prove that you have the means to pay it back. Some loans require little to no money down. Learn these programs or apply with our preferred lender to find out what your qualified for.
1,080 Loan Officer Photos - Free & Royalty-Free Stock Photos from Dreamstime

8. Refinancing

If your smart with your investments, refinancing can be very lucrative form of investing. If you're interested in residential real estate investing, you may have heard of the BRRRR method. The acronym stands for Buy, Rehab, Rent, Refinance, Repeat. Similar to house-flipping, this investment strategy focuses on purchasing properties that are not in good shape and fixing them up. After rehabbing the property and renting it out, the refinance allows you to take the equity you made based on a new appraised value. Pay off the original bank/loan and then repeat this process. 
BRRRR Investing + BRRRR Ownership
9. Tangible Asset

Many investors believe in seeing and touching their investments. Some people look at Crypto or stocks as imaginary money. For those people, real estate is more of an ideal choice of investment. You can't go wrong with owning land or property. It cant be stolen or hacked. 
63 Tangible Assets Stock Photos, Pictures & Royalty-Free Images - iStock
"90 of all millionaires are invested in real estate."


10. Legacy Wealth

Its easily transferable to the next in line. Most states there is no tax on inherited property. 

12,419 Generational Wealth Stock Photos, Pictures & Royalty-Free Images - iStock



That sums up our top 10 reasons why real estate is a good investment. Please make sure you follow us on social media @JustinWatsonRealty

Check out these homes in Hampton Roads!

Home For Sale In Virginia Beach
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photo 
Justin Watson
Realtor, Re/Max | Edge Realty

757-226-9007 | 757-995-5384 | JWatson@JustinWatsonRealty.com

JustinWatsonRealty.com
120 S. Lynnhaven Rd #204 Virginia Beach, VA 23452
RE/MAX Edge
Justin Watson
120 S. Lynnhaven Rd, Ste 204
Virginia Beach, VA 23452
757-995-5384

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