While we’re celebrating love this week–whether that’s enjoying a candlelit dinner with your partner, grabbing pizza with friends, or snuggling up on the couch with Netflix and takeout–let’s talk about other forms of love. Namely, let’s discuss love for investing in real estate.
In my time working as a writer for Pickett Street, I’ve witnessed and felt inspired by how much everyone on their team truly loves working in the real estate world. I’ve also learned that there is something magical about investing in real estate. This is not to say that this investment doesn’t have its challenges–like all things worth loving, it does–but to say that it’s an incredibly rewarding lifelong practice.
If you’re already thinking, “Yes! I’m in love! Sign me up!”, then get in touch with Pickett Street ((425) 502-5397) or info@pickettstreet.com) to buy or sell a home in the Seattle area. If you need more convincing, here are three reasons to love real estate.
1. Owning property generates income.
Forbes notes that one of real estate’s main benefits is that it allows you to generate significant income without having to sell your investment. While stocks and bonds both yield about 2%, real estate allows you to generate high single to low double digit returns on your cash even with a mortgage.
Not to mention, owning property can open up several creative and smart income-generating possibilities. Pickett Street’s preferred mortgage lender Cody Touchette suggests his favorite investment strategy: buy a multi-family home (up to four units) with an FHA loan at 3.5% down payment, then live in one of the units and rent out the other three, which will pay for your mortgage so that you live in your home for free.
For more information about this topic, check out our blog post on how owning a home builds wealth.
2. Owning a home can protect you and your assets from inflation.
Owning a home is a smart investment in terms of inflation. Inflation can increase the value of real estate, which is good for homeowners. However, your fixed rate mortgage payments will not increase with inflation, which is also good for homeowners.
To gain a better understanding of how recent tax changes will affect your status as a homeowner, check out our recent blog post on the 2017 Tax Cuts and Jobs Act.
3. Real estate is fun.
While this reason to invest in real estate might not be as financially practical as the others, it’s still important (don’t we all need a little–or a lot–of fun in our lives?). First, investing in real estate allows you to be your own boss and enjoy some flexibility in how you make money. Second, when investing, you will need to shop around, examining interesting Seattle area properties and imagining the possibilities for renovating these properties. To someone like me who loves to spend weekend afternoons popping into open houses with their mother, this sounds terribly exciting.
For more inspiration, check out this interview with Pickett Street’s Margaret Smith on how she got started in real estate and why she loves it. Additionally, whether you’re head-over-heels in love with real estate, or perhaps just harboring a small but growing crush, let Pickett Street ((425) 502-5397) or info@pickettstreet.com) help you navigate this at times challenging, yet thoroughly joyful and rewarding process.