If you’re looking for investments to add to your portfolio, or to start one, then real estate is a uniquely attractive option but you might not know why you should choose real estate. While you might have dozens of investment opportunities open to you, here are five reasons why Bellevue real estate makes a great addition to your portfolio.
Tangible Assets
While there are thousands of things that you can invest in, very few of them offer the value of a tangible asset. Tangible means that you can see and feel your investment, which is more than a bit reassuring. While the different is psychological, it is an asset that you can make immediate use of, and even live in. The flip side is that it does require repairs, maintenance, and the occasional cleaning from time to time, which a stock on the NASDAQ will never require.
Property Appreciation
While the value of Bellevue property is on the high side right now, statistics point that value will continue to go up. This is known as appreciating value, and while not guaranteed, is definitely a reason to invest in property. This means that if you buy property now and in ten years decide that property rental is not for you, you can sell it for a profit.
Leverage
There are several local schemes and programs to help beginning real estate investors get started with buying their own property in the Puget Sound area. What that means for you is that you can get started investing with only a fraction of your own capital, so you can get started while only investing a small amount of your own money. Once again, there is a flip side, in that you may have to pay interest on leverage. However, you will have current income, or what you make over the top of mortgage or loan payments each month, or essentially, money that you get without having to work for it. Once you pay off the loan or mortgage, this money the full amount of the rent minus maintenance.
No Profit Means No Taxes
If you spend everything you make from the rental property on repairs and repaying a mortgage for the first year or two, then you won’t have to pay tax. In fact, a rental property which does not turn over a profit usually means that you have a deductible asset so that you can save money in taxes. Essentially, it’s a benefit to you even if you break even. Of course, the key to investing in anything is to make a profit, so you do want to avoid this whenever possible by shopping around for the right investment property, and renting it out as soon as possible.
Turn Key Investments
While real estate investment is traditionally seen as a lot of work, it doesn’t have to be. Hiring a professional Bellevue property management company to handle all of the marketing, rental, paperwork, and maintenance. Hiring a property management company essentially means that you do not have to do anything but pick up your check every month, which definitely makes investing in real estate a lot easier.