Top 3 Reasons Why Real Estate Is a Great Investment

March 25, 2019 12:30 am - Published by

If you’ve been putting away money for some time now, you may be thinking it’s time to consider investing it. You may consider the typical options: stocks, bonds, or mutual funds. But our team at NBA Builders wants to help you see the value in real estate as an investment. We are in this market ourselves, so we understand the entire process. Whether you’re interested in flipping and selling a property, or remodeling a rental, we have the connections in the Indianapolis area to turn your investment dreams into reality. We’d like to share with you the top three reasons to consider a real estate investment:

Real Estate Investment

1. Income

The first, and perhaps most obvious, reason to invest in real estate is the income it provides. If you own just one rental home, the monthly rent that your tenant pays is income straight to you. If you think of this over the long term, you may one day be able to earn enough income from your real estate to replace your current income altogether and retire early! One of the biggest issues people face when planning for retirement is how to create an income stream so they don’t have to work any longer. People work for years to build up a retirement “nest-egg” and then they aren’t sure of the best way to turn that “nest-egg” into an actual income stream. Real estate helps to alleviate this issue.

2. Equity

The second reason is equity. Each time you make a mortgage payment, part of it goes toward paying interest on the loan and part goes toward the principal value of the property. So with each payment, you own more and more of the property. If you own rental properties, the income from the rentals will cover the mortgage payment, and there will be money left over for repairs, maintenance, and more. Finally, at the end of the mortgage period, you will own the entire property and your tenants will have paid the majority of the cost.

3. Appreciation

In addition to the build-up in equity from paying down the mortgage, you will also benefit from the increase in property value. Over time, real estate prices tend to rise in value. Every region of the country is a little different, but regardless of high-appreciating areas such as major cities, inflation alone pushes up the costs of most things over time, including real estate.

Let Us Help

Our team at NBA Builders is experienced in real estate investments in the Indianapolis area. We understand the real estate market in most neighborhoods, and the lender requirements for financing, appraisal, and inspections. Contact us today at (317) 732-4277 or check out our Real Estate Investment page for our 10-step process to get you on your way toward meeting your investment goals.

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