3 Reasons Investment Properties Are a Smart Buy

Today, our own investment specialist Alex Manning shares three reasons why investment properties are worth your consideration.
There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers.
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Welcome back for part two of our investment series. Today I’m joined by our own investment specialist Alex Manning, who will share with us three reasons why you might want to seriously consider owning an investment property. People buy investment properties for many reasons, and three of the most common ones are safety, ease of getting started, and versatility. Safety Buying real estate investment properties is a safe investment. Good times and bad times come and go, but homes last. If times are good, the property will appreciate in value. If times are bad, fewer people are buying homes and instead look to rent. That allows you to raise rent prices and to get maintenance and upgrades done at a reduced cost. Investment property has a proven track record. As long as you buy correctly, you will not get hurt. Buying correctly at the right price is the key. It’s easy to get started Banks love to lend money for residential property purchases. That, combined with the fact that you only need to put 20% down to buy most investment properties, makes it easy to acquire a second, or even a third, house. The magic here is leverage. You control the entire asset by only having to put down one-fifth of its cost. Most people are quite surprised to learn how easy it is to secure a loan for an investment property.
Buying real estate investment properties is a safe investment
An investment property is versatile because it can produce wealth in three distinct ways:

  • Long-term capital growth. Houses will rise in value over time.
  • Positive cash flow. If you need cash, select investment properties where rents outweigh the holding costs.
  • The third is adding value. You can do improvements that allow you to raise rents or lower expenses. Try doing that with a stock or bond. 

There is a way all three of these reasons can be wrapped up in one property. However, to find such a property, you will need to work with a professional who thoroughly understands the local investment market, preferably someone who actually owns investment property themselves and can share their experiences.

An experienced agent is key to maximizing your returns. I own investment properties myself—it’s how we put our kids through college and it’s a part of our retirement plan.

If you are considering an investment in real estate, don’t wait. Timing is everything, and you need to make choices early in life. Call us at (717) 695-3177 or send an email at Info@JoyDaniels.com. We are ready to meet your real estate goals.