Suzanne Carney is one of Tennessee’s top real estate gurus. She isn’t only in the business of selling homes; she’s also well known for her insightful strategies on property investment and wealth accumulation. Today she shares eight motivations on why it’s so important to invest in property in the US.
The motivation behind these tips is building wealth. There are many guides available on how to make your business a success and how to trade in stocks. But Americans can greatly benefit from Suzanne’s advice because property investment is one of the safest, surest ways to build wealth in America. It may not be instant wealth, but it’s certainly a gradual way of making your money work for you in the background. Here’s what our guest expert has to say.
- Property is an appreciating investment
The most important bit of advice we can learn from Suzanne is that property always appreciates over time. There’s always a market for homes and demand for these houses will drive the property market upwards. There will always be dips in property value, but generally the value of property will follow an upward trend. Unlike a car or home appliance which loses value over time, property will sell for more than what you paid for it—provided you maintain the condition and wait a fair amount of years before selling.
- Home improvement strategies can earn you thousands of dollars
Suzanne mentions that maintaining the condition of a property is a way to protect your investment and ensure a decent return when you finally sell. But what about enhancing the condition of your property and ensuring a higher ROI when you do eventually sell?
This is another benefit to owning property because you get to control how much you eventually sell your property for. Renovating your kitchen, adding a bathroom or bedroom and adding valuable features to your home will all improve your quality of life while increasing the value of your house.
Suzanne also cautions homeowners not to overcapitalize on these home improvements. Only add improvements that will compliment your property value. It’s all about demand, so be sure to speak to an expert before spending huge amounts of money on improvements that are not sought after in your area.
- You get several tax benefits when you own property
Some technical tax advice is another welcome contribution from Suzanne Carney. She explains that there are multiple tax benefits to owning a home. If you combine these benefits with the investment of the property itself, you can expect to earn a massive return on investment. So what are some of these tax benefits?
- You can claim back tax on home improvement interest payments which is even more motivation to make those improvements and increase the value of your home.
- Installing green and/or renewable energy features to your home gives you money saving benefits, and these are also tax deductible!
- During the first year of owning your home you can claim back on tax spent on mortgage payment interest.
- Homeowners who run a business from home or those who work from home can claim back taxes pertaining to home office improvements and repairs.
- Owning is more lucrative than renting
When you rent the property you live in you are essentially paying someone else the same money you could be paying yourself. Many Americans perceive owning property as more expensive than renting. This isn’t strictly true, because the long-term benefits of owning property far surpass renting.
Even though a large percentage of your mortgage payments will go to paying off your interest, you are still paying for something for which you can one day get a high return on investment. It’s yours! Any money you spend is for YOU.
- You have the option of renting out your property
Owning a property can actually pay for itself. If you don’t live on your owned property you have the option of renting it out. This is usually done by homeowners who have more than one property. The rent money from that property will usually cover your mortgage payments. When the time comes to sell you will get a return on investment for a house that someone else paid off for you!
There are pros and cons to this strategy, but in the long run, you will enjoy the monetary benefits of renting out a property. Sometimes you will have to deal with late payers, property damage and various forms of frustration associated with renting out a property. But with time and experience, you will learn how to deal with these issues without negatively affecting your investment.
- Property ownership in the US is one of the safest investments available
You can invest your money in various ways. You could trade the stock market. You could invest in a business. You could also simply leave your money in a high interest bank account for years or even decades. Many of these investments have incredibly high returns, but they come with high risk too. Others have less risk, but they are slow to give you a good return.
Property investment is a slow investment that is virtually risk free. Your return on investment is quite substantial compared to other slow investments. If you can afford your mortgage payments, you’re on your way to a lucrative return on investment years down the line. Property is one of the most balanced ways to build wealth in terms of time, risk and ROI.
- Your payment ‘value’ decreases over time
Buying a house today will cost you a certain amount per month. Your monthly payments are based on the price of the house and the interest rate. The price of the house is determined by inflation and the housing market. That means that your monthly payments are indirectly based on inflation and the housing market.
With this in mind, Suzanne Carney reminds us that your mortgage payments will remain more or less the same as the years go by. While the payments you pay now are based on current inflation, your payments in five years’ time will be the same during a time when inflation will be higher. If you take into account your salary increases which are based on inflation and the rising costs of living, your home will cost the same it did when you first bought it.
Within five years you have the option of paying the same mortgage installments as you always have; or you could increase your payments and pay your house off faster. In ten years your options are the same. Within twenty years—assuming you still have the same house—your payments will seem negligible compared to what new homeowners will be paying.
Simply put, your options get more and more lucrative as the years pass. You could purchase a new property, or pay off your old one faster. Whatever you decide, you’ll have an investment that remains consistent through all kinds of economic climates.
- Owning property is a stepladder in wealth accumulation
As you can see, Suzanne is giving her clients great advice on how to build up their wealth. Her final piece of advice is to ride out those economic storms and keep those property investments in place. Times will change from good to bad, and then good again. Throughout all this, your house stands as a solid investment against the good times and the bad.
The sooner you buy property the better. If you’re looking to invest in anything right now, purchase property in the US. It’s a lucrative investment you simply cannot afford to ignore. Use property to slowly and securely build your wealth. It’s the safest way to ensure you have something to leave your children one day while living a life secure in your financial freedom.
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