Just over 46% of Las Vegas residents are renters. As buying homes get more expensive, more people are opting to rent long-term. That means that there's a continuous need for rental properties.
If you've been considering trying to invest in real estate, now might be the time. While all investments are risky, investing in short and long-term rentals is quite profitable.
We're here to talk about all of the reasons that you may want to consider adding real estate to your investment portfolio. Read on to learn more.
It's a Long-Term "Secure" Investment
One of the best things about real estate is that it's a long-term investment. When you buy a home, commercial property, or multi-unit residential property to use as an investment property, you are building equity and securing your financial future.
As long as the property continues to exist and has tenants, you continue to make money on it.
If it's a residential property, you also have the benefit of eventually passing it down or using it for yourself in the future. It's not uncommon for people to pass down their extra properties to family members when they're ready to stop collecting income from them. A home isn't just an investment.
Real Estate Is Less Volatile Than Other Investments
It's no secret that investing is risky. If you have a portfolio full of stocks and precious metals, you've likely seen that portfolio gain and lose significant value over time.
Real estate can still be volatile and there are always risks. That said, housing will continue to be a necessity forever. As long as there is always someone looking for a home, your property investment will hold value.
The amount of money you bring in from that property may change, but especially after you pay off your mortgage, you'll still be making decent money off of it.
Property Investment Can Create Nearly Passive Income
Passive income is the goal. When income is passive, it means that it continues flowing with minimal (if any) effort on your part.
Most of the time, property investing isn't passive. If, however, you use a property management company, it's as close to passive as you can get.
A property management company will take care of all of the "behind the scenes" work so you can just enjoy your income.
Property Investments are Protected Against Inflation
At the moment, the property is considered inflation-proof. When the cost of living goes up, the cost of housing also goes up. This isn't the case for other types of investments.
This means that your money is more valuable when you invest it in a property. Even if the cost of housing goes down, it should do so equally with the cost of living (so your property won't be losing value).
Will You Invest in Real Estate in 2023?
So what do you think? Will you take the plunge and invest in real estate in the upcoming year?
Any type of investment is risky, but investing in long-term rentals is more secure and profitable than casual investing in the stock market. If you want your money to go further, real estate is the way to go.
At Avalon Realty and Oaktree Management, we help property investors in Las Vegas find and manage investment properties. Contact us to learn more about what we can do for you today.
Bonnie is the visionary that has driven the company and culture of Avalon since 1993. Her passion is improving procedures and practices; incorporating technology and value added services for both our clients and tenants.