Real Estate Can Help You Build More Wealth
Like many other Americans, you may be starting to experience better financial stability as the economy slowly strengthens. This greater fiscal well-being puts you in the position to pay off high-interest consumer debt so you can contribute more to long-term savings and further develop your overall net worth. There are many ways to build wealth, such as devoting more of your salary to your retirement plan and investing in income-generating assets such as dividend stocks and index funds. Another excellent way to increase your net worth is by acquiring real estate.
Profiting from real estate requires a good balance of timing, location, opportunity, knowledge, and finally, patience. According to the latest survey of a nationwide panel of over one hundred economists, real estate experts and investment & market strategists from Pulsenomics, home values are expected to appreciate by 4.0% by the end of 2016, 3.4% in 2017, 3.0% in 2018 and 2019, and finally 2.8% in 2020. So if you were to purchase a home for $300,000 today, you could experience an average annual appreciation of 3.2% – which amounts to a total of $48,000 in equity by 2020.
In addition to the equity you can accumulate with an investment property, you can allow it to pay for itself and possibly generate some extra income by renting it out.
It is important to remember that building wealth by investing in real estate is a learn-as-you-go process that starts with a single property. If you are able to generate income with that property, you may consider acquiring another.
To find out if real estate is a viable investment option for you, consult with your accountant or financial advisor. For more financial tips, visit the Cliffco Mortgage Bankers Know-How Center.