There are many reasons why 2018 is going to be a great market for real estate investing. Here are the top seven reasons to invest in the Wasatch Front real estate market:
1. Strong economic indicators. The 2018 economy looks sunny-side up. For all you novice and expert real estate investors out there, it’s a simple equation. If the economy is growing, then the housing market will see positive repercussions and growth in turn.
In fact, the Wasatch Front just made the PricewaterhouseCoopers and Urban Land Institute’s Top 3 U.S. Markets to Watch list. Additionally, Salt Lake City was named No. 6 in the Top 10 Housing Markets for 2018 according to Realtor.com’s 2018 National Housing Forecast. That is great news for the Salt Lake City real estate market.
This year, we expect more people to sell houses, buy houses, and get mortgage loans. 2018 is a great year to get your first rental property and delve into real estate investing. Not only is real estate a safe investment option, it’s a financially rewarding option for the long haul.
2. It’s easier to get a mortgage. It has been tough to get a mortgage for a while, but it’s easier to get a mortgage due to lenient credit qualifications and low interest rates. This means more people are taking out loans to finance their investment properties, whether it’s a condo, single-family property, or multi-family property. Real estate investors are taking advantage of this perk and investing heavily in the real estate market left and right. The competition is strong out there, but you have a good chance of getting approved for your loan and kickstarting your real estate business today.
A mortgage is a great way to leverage an investment. You can’t borrow money to put into the stock market, and the stock market does not provide you with a tangible investment anyway.
3. Appreciation. Real estate is one of the safest investments out there, and it is a great long-term investment strategy. Your rental properties increase in value over time, given that the property is in a prime location and growing economy. You will be able to sell your property for a lot more money and make a good profit 20 or 30 years down the road, and in the meantime, you will receive rental income every month.
4. Tax benefits. There are certain tax advantages to investing in real estate. Real estate is a business, and any business owner, entrepreneur, or investor out there gets tax exemptions and benefits for owning and running a business. Investors who own a rental property can write off the interest rate charged on the mortgage, and appreciation, expenses, maintenance, and repairs associated with the property. That said, it’s very important to hire the right accountant to get more tax exemptions and help you with the money along the way.
5. You will have a steady flow of income with a rental property. Not only are you becoming your own boss, but you’re also earning a steady flow of rental income every single month. This passive income is one of the best reasons to invest in real estate today. If you get the right tenants, you can secure a steady flow of cash for a long time, and you avoid the risk of vacancy.
Trust me, I’ve been doing this a long time, and good tenants matter. Nevertheless, it’s important that you always underestimate your rental income and overestimate expenses. Don’t forget, your rental income is helping you pay down your mortgage payments. That’s a win-win situation.
6. Financial freedom. In the long run, one reason to invest in real estate is to accumulate wealth. Owning rental properties is passive income for the long haul. In the most ideal case (i.e. no vacant units), whether you want to save for retirement or use that extra income for a side hustle, investing in real estate is the answer to gain financial freedom for years on end. It took me less than 12 years to buy and pay off all the investment properties that I have now. You can do this, too—it’s not rocket science.
7. Financial security. In a nutshell, real estate offers investors financial security for many years down the line. When you own a tangible asset that’s bound to appreciate over time, you have the financial security to sell it for a lot more than its original price. If you need cash, you can always sell the property. If you don’t sell, you’ll continue to earn passive income from the tenants who are also helping to pay down the mortgage. The financial security you’ll find in real estate is what makes it a very lucrative business for a lot of people.
As you can see, there are a number of reasons to invest in real estate in 2018. You could reap the financial benefits if you start today.
If you have any questions about investing in Wasatch Front real estate or Salt Lake City real estate, be sure to reach out to The Stern Team. We would be happy to help you!