Buying Rental Property Has Its Advantages
Nov. 19, 2019
Investors are always looking for opportunities that have significant earning potential and a minimal amount of risk. With so many hot tech stocks or some other cutting-edge investment making the news, some have forgotten how lucrative and reliable real estate can be here in Boca Raton and the surrounding area. Reasons for this include the strength of the real estate market. Demand for new larger spaces is high, while smaller properties are still doing well.
Real Estate Investing Makes Sense
Properties and neighborhoods will vary, but Boca Raton is more stable than most. Even in softer markets, there are still advantages to buying a rental property, including:
Good for Cash Flow: Investors often appreciate the income that comes from collecting rents. This can be particularly useful if other parts of the investment portfolio are non-income generating assets.
Property Values: Many remember the recession a decade ago, but property values remained relatively stable in comparison to stocks. They continue to rise overall, growing the value of an asset and allowing owners to reinvest in the property or use the value as leverage to pursue other investment opportunities.
Inflation Is Good: While inflation negatively affects certain assets, real estate value goes up and provides less exposure to risk.
Working with Good People Is Key
Some worry that owning a rental property, or several of them, can be a headache. However, working with good realtors, contractors and property managers can minimize stress. A real estate attorney familiar with the area can also be a tremendous asset by helping to ensure that transactions are equitable while protecting the client’s best interests.