“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Are Rental Homes an I.D.E.A.L. Investment?...

Are Rental Homes an I.D.E.A.L. Investment? PT.4

Are Rental Homes an I.D.E.A.L. Investment?

There are a lot of investment options available for us today.  Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan.  
for rent

Some people may claim that I am biased, and maybe that is so.  However, I firmly believe that rental homes are an I.D.E.A.L. investment and should be included in every retirement plan.  Over the next several post I will discuss why this is so and give you some ideas to help you with your real estate investment planning.

Keep in mind that there are no promised returns.  I think the examples that I give are realistic but please consult with your own investment and tax advisers.
 *****

As we go through this series I will be using an example of  a 3 bedroom 2 bath home with a purchase cost of $100,000.  There are two reasons for this.  1. It makes the math simple.  2. That is a home that would be very readily and realistically purchased in this area and market.  In other areas the math be be different but the same logic will apply.  

Search Cobb Homes priced from $95-105,000


Income
Depreciation - tax advantages
Equity build
Appreciation
L.

Part 4:

Over the long term real estate goes up in value.  Again, you need to be in it for the long term. I recommend a 15 year minimum.  An investment strategy of 20 years plus is even better. If you bought 10-12 years ago your value is more or less just breaking even right now.  If you bought 5 years the value has gone down.  However the rental income, tax benefits, and equity build are all still there.  If you are a long term investor you are still seeing a solid return from your cash flow, tax benefits, and equity build.  

Are we at the bottom of the market now?  I don't own that crystal ball.  However, I do believe that if we are not at the bottom we are close.  Today's low prices, high rent return and low interest rates make it a great time to buy.  Realistically, 15-20 years from, do you think a home you buy today with be worth more or less than today's purchase price?  Almost certainly everybody would answer that it will be worth more!

If you missed it Here are the previous installments:  

Rental Homes- I.D.E.A.L. Investment? pt1

Are Rental Homes an I.D.E.A.L. Investment? PT.2

Are Rental Homes an I.D.E.A.L. Investment? PT.3
Posted Thursday Dec 15