Buy & Hold Real Estate Wealth Building Strategy
I personally believe buying & holding real estate is one of the most effective wealth building strategies available to us as individuals. Holding one or more rental properties affords us the long term opportunity to own the property outright. Unfortunately, Principle Pay Down/Building Equity is a strategy that many people overlook because it's not a get rich quick scheme. In essence, the tenant pays down the landlords mortgage in the form of rent (payments are applied to principle, interest, taxes and insurance). Over time, the principle amount owed diminishes and your equity in the home increases. When you sell (10, 20 or 30 years from now) you have a nice chunk of equity or you own the property outright.
Potential tax benefits, appreciation and passive income during retirement are more good reasons to consider investing in real estate.
As with all investment strategies, due diligence is required. Seek the help of a local Realtor to identify areas where homes rent quickly and to verify market rent in those areas. A local lending professional can help you understand your loan options and consult your accountant to assess potential tax benefits.
If you're considering purchasing a rental property in Northern Virginia and would like to know more about current rental conditions or areas where homes rent quickly and for top dollar, don't hesitate to contact me at SusanBorrelliHomes@gmail.com.