Are you financially prepared for the long run? As outsourcing and automation become more prevalent, it’s never been so important for people to think about how they’re going to outpace the job market. To protect your future and ensure that you have an ample amount of income into retirement, investing in rental properties is one of the best forms of insurance. Here’s why.
Automation and Outsourcing Are Changing the Job Market
Throughout the second half of the 1900’s, people around the world mostly enjoyed a strong job market. When these people went to college, they were essentially guaranteed a job. For those who didn’t go to college, there were always manufacturing jobs to fall back on.
However, that is changing rapidly. According to some estimates, America has lost nearly one-third of its manufacturing jobs in the last twenty years. Combine this with the fact that many office jobs can now be outsourced to other countries at a fraction of the cost of what American workers make, and you’re left with a job market that’s significantly different than it was in the 1900’s.
As the job market continues to change, people have to make adjustments to secure their financial future. That’s why many people are looking at real estate investing as a way to protect themselves against automation and outsourcing.
Create Your Own Income with Real Estate Investing
There are many reasons people are investing in rental properties to financially protect themselves. Here are some of the most popular reasons:
- Cash Flow: A good rental property pays all its expenses and generates cash flow profits for the owner. With proper management, cash can continue to flow from the property your entire life and can be passed to the next generation.
- Leverage: Real estate is a hard asset, and one of the investments that can be acquired with little to no money down. Leverage allows investors to purchase properties with “other people’s money,” and grow their portfolio quickly. But, investors must also be careful not to over leverage their properties, which can be disastrous.
- Protection Against Inflation: Experienced investors use real estate to manage volatility and protect against rising inflation because it is one of the most stable hard assets in the world. When there is inflation, real estate prices also go up; and when prices fall, real estate prices remain relatively stable.
- Physical Asset: Real estate investment is one of the few ways that you can invest in a physical asset. Land has value for several reasons, perhaps most of all because it is a limited resource. Buildings and infrastructure also have value that appreciates over time. And as a physical asset, real estate values are among the most stable in all economic conditions.
- Tax Advantages: Real estate investing is a business; therefore, investors have access to tax benefits not available to homeowners. Investors can use programs, like the 1031 Exchange, that allow investors to exchange one property for up to three properties, and realize an increase in value of up to 200%, while deferring taxes.
If you’re interested in protecting your future by generating your own income, real estate is one of the best vehicles to accomplish your goal. That’s why people with various backgrounds choose to invest in real estate.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.