{"id":19439,"date":"2020-10-08T08:59:54","date_gmt":"2020-10-08T15:59:54","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=19439"},"modified":"2020-10-08T08:59:54","modified_gmt":"2020-10-08T15:59:54","slug":"buyer-why-invest-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-why-invest-in-real-estate\/","title":{"rendered":"19 Reasons Why You Should Invest in Real Estate Today"},"content":{"rendered":"<p>There are lots of reasons why you might want to invest in real estate. It might seem like a pipe dream and out of reach for \u201cnormal people.\u201d Many think that they have to be a savvy investor with tons of money \u2014 but, with some common sense and research, <a href=\"https:\/\/www.homelight.com\/blog\/buyer-real-estate-investing-for-beginners\/\">it\u2019s pretty accessible, even for beginners<\/a>.<\/p>\n<p><a href=\"https:\/\/www.homelight.com\/agents\/james-gilliland-fl-583521\">Jim Gilliland<\/a>, a top real estate agent in <a href=\"https:\/\/www.homelight.com\/states\/FL\">Florida<\/a>, says that the first step for anyone wanting to take the plunge is to assess their finances and visit a <a href=\"https:\/\/www.homelight.com\/blog\/mortgages-101\/\">mortgage<\/a> broker or bank to see what kind of loan they can qualify for.<\/p>\n<p>\u201cBased on that information,\u201d Gilliland says, \u201cThey can determine the type of property and figure out the location(s) where types of real estate would be available in their price range.\u201d<\/p>\n<p>There are all kinds of reasons why you might want to invest in real estate \u2014 probably some you\u2019ve never considered. Here are 19 that we found.<\/p>\n<figure id=\"attachment_19445\" aria-describedby=\"caption-attachment-19445\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-666x381.png\" class=\"attachment-content size-content\" alt=\"There are many reasons why invest in real estate is a good thing\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-house.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19445\" class=\"wp-caption-text\">Source: (Roger Starnes Sr \/ Unsplash)<\/figcaption><\/figure>\n<h2>1. Real estate has a high tangible asset value.<\/h2>\n<p>Tangible assets <a href=\"https:\/\/www.sciencedirect.com\/topics\/economics-econometrics-and-finance\/corporate-assets\">are physical things<\/a> \u2014 like property, computers, and equipment \u2014 that are worth money. Real estate, especially, will always have some kind of monetary value.<\/p>\n<p>Compare this to investing in stocks where, if the market crashes, it is possible that something you paid $500 for could suddenly be worth $0. With real estate \u2014 land and real property \u2014 your investment will <a href=\"https:\/\/www.homelight.com\/blog\/buyer-is-real-estate-a-good-investment\/\">always be worth something<\/a>.<\/p>\n<h2>2. Real estate appreciates in value.<\/h2>\n<p>Real estate tends to appreciate in value over time.<\/p>\n<p>Not only will the building or home itself likely grow in value, but the actual land that it\u2019s built on will also usually be worth more over the years. In some markets, it\u2019s not uncommon for the land to be worth more than the house that stands on it \u2014 or for the land value to continue to rise even without a house on it.<\/p>\n<p>Bernie and Marion, a couple from Northern Ohio, bought a piece of land for $10,000 in the 1980s, a lakefront lot in a small undeveloped community. They had intended to build on it and make it a summer home, but never did. Over the years, houses went up all around their lot, and the community grew. Now the lot \u2014 still empty \u2014 is worth right around $1 million. It will be part of their legacy to their children.<\/p>\n<h2>3. The opportunity to maximize value is in your hands.<\/h2>\n<p>One of the best things about real estate is that you can improve a property if you want \u2014 add amenities like a pool, or improve it with an <a href=\"https:\/\/www.homelight.com\/blog\/kitchen-update-ideas\/\">updated kitchen<\/a> or bath. You can then either <a href=\"https:\/\/www.homelight.com\/blog\/buyer-rent-vs-buy\/\">rent it out<\/a> or sell it for more than you paid for it.<\/p>\n<p>Since real estate is a tangible asset, any improvements you make to it <a href=\"https:\/\/www.homelight.com\/blog\/what-upgrades-increase-home-value\/\">will increase its value<\/a>. Some things that bring the biggest return for your money are garage door replacements, kitchen remodels, and deck additions.<\/p>\n<figure id=\"attachment_19446\" aria-describedby=\"caption-attachment-19446\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-666x381.png\" class=\"attachment-content size-content\" alt=\"Maximize your equity and upgrade the kitchen for investing in real estate\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-kitchen.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19446\" class=\"wp-caption-text\">Source: (Sidekix Media \/ Unsplash)<\/figcaption><\/figure>\n<h2>4. You build equity in your real estate investments.<\/h2>\n<p>If you invest in actual houses, <a href=\"https:\/\/www.homelight.com\/blog\/what-is-home-equity\/\">your equity in the home should increase the longer you own it<\/a>. Equity is the portion of the home you own outright \u2014 as opposed to the part a bank may own if you have some kind of loan or financing.<\/p>\n<p>As you pay off your loan, you generally build more equity in a property (the exception could be if the market takes a severe downturn, but downturns are generally temporary, so if you can hold on to the property until the market stabilizes, your ability to build equity should resume). Also, as the value of the property appreciates through the years, the house becomes worth more, adding to your equity.<\/p>\n<h2>5. And you can leverage that equity.<\/h2>\n<p>One great option with real estate investments is that you can take out a home equity loan. This can be <a href=\"https:\/\/www.consumer.ftc.gov\/articles\/0227-home-equity-loans-and-credit-lines\">set up either as a line of credit or as a traditional loan<\/a>.<\/p>\n<p>People use home equity loans to pay for college for their kids, home renovations, <a href=\"https:\/\/www.homelight.com\/blog\/using-your-home-equity-for-retirement-income\/\">to buy rental property<\/a>, or, even, sometimes, to pay off other high-interest debt.<\/p>\n<h2>6. Real estate offers better returns than the stock market.<\/h2>\n<p>In Florida, Gilliland explains, \u201cReal estate has been appreciating at 6% to 8% a year. Compare that to a money market investment of 1% or 2%, and real estate offers a much better return.\u201d<\/p>\n<p>Nationally, <a href=\"https:\/\/www.homelight.com\/blog\/pros-and-cons-of-investing-in-real-estate\/\">single-family homes offer yearly returns of 9%<\/a> \u2014 a yield that\u2019s tough to come by with stock investments.<\/p>\n<figure id=\"attachment_19448\" aria-describedby=\"caption-attachment-19448\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-666x381.png\" class=\"attachment-content size-content\" alt=\"Diversify your portfolio for why to invest in real estate\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-portfolio.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19448\" class=\"wp-caption-text\">Source: (Campaign Creators \/ Unsplash)<\/figcaption><\/figure>\n<h2>7. Real estate is a way to diversify your portfolio.<\/h2>\n<p>This is another way to lower some of your risk, especially if you\u2019re investing lots of dollars in other opportunities. Most experts <a href=\"https:\/\/www.investor.gov\/additional-resources\/general-resources\/publications-research\/info-sheets\/beginners%E2%80%99-guide-asset\">recommend diversifying your portfolio<\/a> so you won\u2019t lose everything in one fell swoop if the market where you\u2019ve most heavily invested happens to go south. Real estate is an excellent place to park some of your money \u2014 a place much safer than many other investments.<\/p>\n<p>Ever <a href=\"https:\/\/www.collinsdictionary.com\/dictionary\/english\/safe-as-houses\">hear the term<\/a>, \u201csafe as houses\u201d? There\u2019s a reason people use it.<\/p>\n<h2>8. You can predict the cash flow of real estate investments.<\/h2>\n<p>Most investments don\u2019t allow you to predict the kind of cash flow you\u2019ll receive. With real estate, on the other hand, if you know what a property is renting for and that you have a tenant, you\u2019ll know what your cash flow will be. As long as you keep the property occupied, you can count on that money every month. Remember, though, to budget for routine maintenance and repairs, and factor that into your yearly expenses.<\/p>\n<p>If you don\u2019t want to deal with finding and managing tenants yourself, you can <a href=\"https:\/\/www.homelight.com\/blog\/retiring-with-rental-properties\/\">hire a management company<\/a> or a property manager to do it for you.<\/p>\n<h2>9. You can establish a passive income source.<\/h2>\n<p>Because you can predict cash flow, you can also figure out ways to maximize revenue or cut expenses in order to establish a passive income source that will last as long as you own the property.<\/p>\n<p>Set the rent for your property at an appropriate price and raise it responsibly to cover inflation. Try and always perform preventative maintenance so catastrophes and emergencies don\u2019t sneak up on you. Also, make sure you <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-does-home-insurance-work\/\">have the right insurance<\/a>.<\/p>\n<figure id=\"attachment_19449\" aria-describedby=\"caption-attachment-19449\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-666x381.png\" class=\"attachment-content size-content\" alt=\"You can earn passive income as to why invest in real estate\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-income.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19449\" class=\"wp-caption-text\">Source: (Austin Distel \/ Unsplash)<\/figcaption><\/figure>\n<h2>10. You can take advantage of inflation hedging.<\/h2>\n<p>Although inflation affects every investment, real estate is an investment that is almost always in demand, so it typically maintains its monetary power. Normal inflation often makes it more expensive for companies to create products and services. They either have to raise their prices or accept lower profits. Real estate doesn\u2019t have a strong correlation with stocks or corporate profitability, so <a href=\"https:\/\/money.usnews.com\/investing\/investing-101\/slideshows\/7-classic-inflation-hedges-and-their-thorns?slide=3\">it is a natural inflation hedge<\/a>.<\/p>\n<p>You can also often pass any inflation costs along to tenants.<\/p>\n<h2>11. You get tax benefits with real estate that you don\u2019t see elsewhere.<\/h2>\n<p>If you own your own house, you can <a href=\"https:\/\/www.homelight.com\/blog\/buyer-mortgage-interest-deduction-2019\/\">deduct mortgage interest<\/a>. State and local property taxes are also usually deductible.<\/p>\n<p>For investment properties, you can often <a href=\"https:\/\/www.irs.gov\/publications\/p527\">deduct operating expenses and costs<\/a>, insurance, property taxes, and maintenance.<\/p>\n<p>Capital gain taxes (the taxes you pay if you sell investment properties, or your own home within certain limitations) <a href=\"https:\/\/www.irs.gov\/publications\/p527\">are 15% to 20%<\/a>, typically lower than your personal tax bracket, which can be a huge advantage over other types of investments.<\/p>\n<p>If you use the money from a sale of one property to buy another property, you can defer your capital gains. This means you aren\u2019t taxed at all on that money because it went directly toward the purchase of another property. Make sure you <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc701\">report to the IRS<\/a> that this is what you\u2019ve done, or they\u2019ll send you a letter asking why you haven\u2019t paid taxes on a property sale.<\/p>\n<h2>12. You can claim depreciation as an investor.<\/h2>\n<p>Although real estate usually appreciates in value, the buildings themselves degrade over time, so investors can claim a depreciation non-cash expense on their taxes. The IRS considers residential rental property to <a href=\"https:\/\/www.irs.gov\/publications\/p527\">have a useful life of 27.5 years<\/a>. What this translates to number-wise is that you can divide your cost by 27.5 to figure out what your annual depreciation is. Commercial real estate has a depreciation of 39 years.<\/p>\n<p>Make sure when you\u2019re figuring out your cost to subtract the cost or value of the land. Land doesn\u2019t normally depreciate; only buildings do.<\/p>\n<figure id=\"attachment_19451\" aria-describedby=\"caption-attachment-19451\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-666x381.png\" class=\"attachment-content size-content\" alt=\"Save for retirement for why invest in real estate\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-retire.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19451\" class=\"wp-caption-text\">Source: (James Hose Jr \/ Unsplash)<\/figcaption><\/figure>\n<h2>13. It\u2019s a good (forced) way to save for retirement.<\/h2>\n<p>A 30-year fixed loan allows you to <a href=\"https:\/\/www.homelight.com\/blog\/rental-income-for-retirement\/\">build equity in your own home<\/a> over a long period of time. If you <a href=\"https:\/\/www.homelight.com\/blog\/when-to-downsize-your-home\/\">decide to downsize<\/a> when you\u2019ve paid off your loan, it\u2019s likely you can get a smaller house and have a nice chunk of change left for retirement.<\/p>\n<p>With real estate, your money is in the house, so you\u2019ll have to work a little harder to access it\u00a0 (as opposed to a savings account or even a brokerage account that you can cash out).<\/p>\n<h2>14.\u00a0 You can use rental income to pay down your mortgage.<\/h2>\n<p>Rental income is an excellent way to pay down your mortgage. Renting out a room in your house to a roommate or even your entire house on Airbnb on weekends can provide you some extra cash that you can then put toward your mortgage. Profits from investment rental properties can help you pay down your mortgage sooner, or <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-much-down-payment-for-a-house\/\">save for a down payment<\/a> if you don\u2019t own a home of your own yet. Rental income is also a great source of passive income <a href=\"https:\/\/www.homelight.com\/blog\/rental-income-for-retirement\/\">to add to your retirement plan<\/a>. You\u2019ll have money coming in even after you retire from your job (not just pensions and Social Security).<\/p>\n<p>If you\u2019re going to use Airbnb to rent out your investment property, a room in an apartment or house that you rent, or even a portion of your own home, check the laws in your city for those kinds of rentals. In many major cities where rent prices are high, some Airbnbs can be illegal. Cities in the U.S. with strict Airbnb policies include <a href=\"https:\/\/www.cityandstateny.com\/articles\/policy\/technology\/airbnbs-new-york-city-legal-battles.html\">New York City<\/a>, <a href=\"https:\/\/shorttermrentals.sfgov.org\/about\">San Francisco<\/a>, and<a href=\"https:\/\/www.santamonica.gov\/press\/2018\/03\/13\/city-of-santa-monica-prevails-against-airbnb-and-homeaway\"> Santa Monica<\/a>.<\/p>\n<h2>15. You have tons of options.<\/h2>\n<p>There are all sorts of ways to invest in real estate. Buying your own house counts. Or you can buy a fixer-upper, <a href=\"https:\/\/www.homelight.com\/blog\/how-to-flip-a-house\/\">renovate it, and flip it<\/a>. You can rent out a home, offer a <a href=\"https:\/\/www.homelight.com\/blog\/buyer-whats-the-catch-with-rent-to-own-homes\/\">lease-option agreement (rent-to-own)<\/a>, or invest in a REIT or a crowdfunding app. Whatever your level of commitment, you can probably find a way to invest in real estate.<\/p>\n<p>A REIT <a href=\"https:\/\/www.investor.gov\/additional-resources\/general-resources\/glossary\/real-estate-investment-trust-reit\">is a real estate investment trust<\/a>. Individuals can <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-to-invest-in-real-estate\/\">invest in the trust<\/a> that, in turn, usually owns and manages a large number of real estate investments that produce income \u2014 things like shopping malls, hotels, and resorts.<\/p>\n<p>Some real estate crowdfunding apps include <a href=\"https:\/\/fundrise.com\">Fundrise<\/a>, <a href=\"https:\/\/www.crowdstreet.com\">Crowdstreet,<\/a> and <a href=\"https:\/\/www.roofstock.com\">Roofstock<\/a>. The U.S. Securities and Exchange Commission <a href=\"https:\/\/www.sec.gov\/oiea\/investor-alerts-bulletins\/ib_crowdfunding-.html\">places limits on much you can invest annually<\/a> in any crowdfunded offering. This limit depends on your annual income and your net worth. For instance, if either your annual income or your net worth is less than $107,000, you can invest either $2,200 or 5% of your income or net worth (the lower of the two) in crowdfunding. Yes, this is confusing \u2014 what the SEC is saying is that if you meet the income or net worth limit ($107,000) you can invest <i>either<\/i> 5% of your income or your net worth (whichever of the two is lowest), <i>or<\/i> $2,200. Once you understand what those two figures are, you may invest whichever is higher.<\/p>\n<p>For example: if your annual income is $95,000 and your net worth is $65,000, 5% of those (respectively) would be: $4,750 and $3,250. Therefore, $3,250 is the amount you use to compare with the $2,200 amount. Because $3,250 is greater than $2,200, that\u2019s the maximum amount you\u2019re allowed to invest in real estate in a given year.<\/p>\n<figure id=\"attachment_19452\" aria-describedby=\"caption-attachment-19452\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-666x381.png\" class=\"attachment-content size-content\" alt=\"Investing in real estate creates community\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-community.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19452\" class=\"wp-caption-text\">Source: (Kylie Lugo \/ Unsplash)<\/figcaption><\/figure>\n<h2>16. Investing in real estate is good for communities.<\/h2>\n<p>You\u2019re helping local economies and providing homes for people (or at least a place to stay).\u00a0 By investing in affordable housing, maintaining it well, and adding upgrades, you can help provide nice homes for people to live in \u2014 some of them unable to afford even a small down payment on a house of their own.<\/p>\n<p>If you\u2019re in a position to buy one or two abandoned or unkempt homes and fix them up, you\u2019d be helping the community.<\/p>\n<p>Of course, some people just might not be interested in buying. For instance, Gilliland\u2019s location is \u201ca resort location, a drive-to destination.\u201d \u201cWe get a lot of tourists,\u201d he says, \u201cbut we also have some big [companies] coming in, and the military, and not everyone wants to buy. Some people prefer renting.\u201d<\/p>\n<p>Houses can also <a href=\"https:\/\/www.nextpittsburgh.com\/features\/art-house-fun-house-la-hutte-royal-offers-wild-art-experience\/\">be transformed into other spaces<\/a> that can benefit communities. Investor Evan Mirapaul in Pittsburgh bought two old houses in the Troy Hill neighborhood and transformed them into eclectic art spaces.<\/p>\n<h2>17. The results are almost immediate.<\/h2>\n<p>No matter what kind of investment or what your level of investment, you can start seeing returns almost immediately.<\/p>\n<h2>18. Real estate doesn\u2019t have to tie up a lot of cash.<\/h2>\n<p>In many instances, you can <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-much-down-payment-for-a-house\/\">put down as little as 10% on a property<\/a>, then essentially use the bank\u2019s money to grow your investment.<\/p>\n<p>\u201cLending is becoming more viable and friendly to buyers,\u201d Gilliland says, \u201cMore so than what it was after the housing crisis. They seem to be lessening constraints, and local banks are lending more to builders and doing more in house portfolio loans \u2014 so there is just a better environment than ten years ago.\u201d<\/p>\n<figure id=\"attachment_19453\" aria-describedby=\"caption-attachment-19453\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-666x381.png\" class=\"attachment-content size-content\" alt=\"Why invest in real estate can bring you your dream home\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate-dream.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-19453\" class=\"wp-caption-text\">Source: (Marvin Meyer \/ Unsplash)<\/figcaption><\/figure>\n<h2>19. Real estate investing could help you eventually afford your dream house.<\/h2>\n<p>If you aren\u2019t able to afford the exact house you want, you could <a href=\"https:\/\/www.homelight.com\/blog\/buyer-real-estate-investing\/\">consider buying something more affordable<\/a> and living in it for a few years to build some equity. After that, you can start investing in some rental property, building your portfolio and net worth (and bank accounts), until you\u2019re able to afford the house of your dreams.<\/p>\n<p><i>Header Image Source: (Roger Starnes Sr \/ Unsplash)<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are plenty of good reasons to invest in real estate, and you don\u2019t already have to be a savvy investor with tons of money. Here are 19 reasons to start.<\/p>\n","protected":false},"author":148,"featured_media":19444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,620,626],"tags":[],"class_list":["post-19439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-buy-house","category-real-estate-investing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>19 Reasons Why You Should Invest in Real Estate Today<\/title>\n<meta name=\"description\" content=\"There are plenty of reasons to invest in real estate, and you don\u2019t already have to be a savvy investor with tons of money. Here are 19 reasons to start.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/buyer-why-invest-in-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"19 Reasons Why You Should Invest in Real Estate Today\" \/>\n<meta property=\"og:description\" content=\"There are plenty of reasons to invest in real estate, and you don\u2019t already have to be a savvy investor with tons of money. Here are 19 reasons to start.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/buyer-why-invest-in-real-estate\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-08T15:59:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/hl-blog.homelight.com\/wp-content\/uploads\/2020\/10\/why-invest-in-real-estate.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Vanessa Nirode\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vanessa Nirode\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"19 Reasons Why You Should Invest in Real Estate Today","description":"There are plenty of reasons to invest in real estate, and you don\u2019t already have to be a savvy investor with tons of money. 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