Blog

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth

Jul 28, 2023 | Uncategorized

Share The Post :
Whether you have recently graduated from college or are getting close to retirement, it’s likely that you have given some thought as to how you can grow your net worth.
You might have invested in stocks, picked up a few bonds or have a 401(k) plan set up to help fund your retirement. But have you considered buying real estate as part of your portfolio?

In today’s blog post we’ll have a look at three reasons why real estate investing is one of the most effective ways to grow your overall net worth.

Reason #1: It Generates Passive Income

One of the best reasons to hold real estate as part of your investment portfolio is that it can generate passive income in the form of rent. Whether you buy a single-family home or an apartment block, you can almost certainly find interested tenants who will live there.

Part of the rent you receive each month will cover the costs of owning and operating the property. The rest of it is income which will continue to build over time.

Reason #2: It Increases In Value Over Time

Another great reason to invest in real estate is that in most cases, it increases in value over time. As long as you are maintaining the property and investing in its upkeep you have a decent shot at it being worth more in the coming years, should you decide to sell.

Keep in mind that real estate is cyclical and that it’s not always going to be the right time to sell and realize your gains.

Reason #3: You Can Leverage Equity To Buy More Properties

Finally, our third reason that real estate is the best way to build your worth is your ability to use it as leverage to buy more real estate. For example, say you decide to purchase a house valued at $100,000 as an investment property.

Once the mortgage on that home is paid off, you have an asset valued at $100,000 that you can then borrow against. So you can go out and acquire another $100,000 home without having to sell the first. As you can see, this can scale quite nicely over time.

If you are interested in learning more about real estate investing and how you can make use of mortgage financing to purchase properties, give our offices a call. We are happy to share our insight and expertise as well as advise you on the best mortgage products to help reach your financial goals.

Want To Get A Cash Offer On Your Austin house?

Please fill out the quick form below, and we will be in touch with you shortly!

  • By submitting this form and signing up for texts, you consent to receive email marketing and text messages from Sell Your House Simply at the number provided, including messages sent by autodialer. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP or clicking the unsubscribe link (where available)
  • This field is for validation purposes and should be left unchanged.

Listing vs. Selling To Us

Which route is quicker?
Puts more cash in your pocket?
Has less hassle?

See The Difference Here

Get a Cash Offer Now

Submit your info below, and we'll get in touch right away to discuss your offer

  • By submitting this form and signing up for texts, you consent to receive email marketing and text messages from Sell Your House Simply at the number provided, including messages sent by autodialer. Consent is not a condition of purchase. Msg & data rates may apply. Unsubscribe at any time by replying STOP or clicking the unsubscribe link (where available)
  • This field is for validation purposes and should be left unchanged.

Recent Testimonial

  • Mark S.

    Working with William was super easy - They bought our house quickly and we got to set our closing date, with no fees!

  • Jack & Pam

    Working with William couldn't have been easier. They made a tough decision easy and I'm glad we found them!

  • Sarah C.

    “… I didn’t know what to do.” When I got a notice of foreclosure, I didn’t know what to do. William explained the process of foreclosure and how they could help and I was surprised to learn what my options were. They worked with me, and my bank, and were ultimately were able to avoid my foreclosure.