Reasons why you may choose to invest your home’s equity in an investment property:
Diversification: Investing in an investment property allows homeowners to diversify their investment portfolio beyond their primary residence. This can help to spread risk across multiple assets and potentially provide a higher return on investment.
Cash flow: An investment property may generate rental income, which can provide a of cash flow for homeowners.
Appreciation: Real estate is a long-term investment that can appreciate in value over time. By investing in an investment property, homeowners may be able to benefit from potential appreciation in property values, which can increase their overall net worth.
Tax benefits: Homeowners who invest in rental properties may be able to take advantage of tax deductions for expenses related to the property, such as mortgage interest, property taxes, and repairs.
Retirement planning: Investing in an investment property can be a part of a larger retirement plan for homeowners. By generating rental income and potential appreciation in property values, homeowners may be able to build a nest egg for their retirement years.
Investing in an investment property also comes with potential risks, such as market fluctuations, property damage, and tenant issues but is a great HEDGE against inflation and has many other benefits. As investor specialists, we can help you evaluate the potential benefits and risks before investing your home’s equity in an investment property. Contact us today.
BUILD YOUR WEALTH THROUGH REAL ESTATE.
-Kirk & Tristina McElreath
