• Increase Your Net Worth With Real Estate

    Posted on December 14, 2016 by in Investing, Tips for Home Buyers

    Compare the net worth of anyone who has rented for 20 years against any homeowner of the same time period, and almost without exception, the homeowner will have a higher net worth.

    Find Your Next Home Here! Download the app today!

    Why is that? Let’s break it down…

    Real estate is one of the best investment to protect you against inflation. If you stuck $100,000 in your mattress, over time inflation would steal some of that money from you because as inflation rises, what you can buy for $100,000 goes down. Take the same $100,000 and buy real estate with it and with even meager appreciation, you’ll likely see your asset rise faster in value than inflation can take it away from you.

    Real estate is a leveraged investment. Take the same $100,000 and use it as a down-payment to buy a $500,000 asset. You have now leveraged your investment. Meaning that instead of seeing appreciation on just the $100,000, you will also recognize the appreciation on the bank’s money too. If home values go up 3% in a year, you’ll benefit from a return on investment of $15,000 ($500,000 * 3%) rather than just a 3% return on your cash investment.

    You have to live somewhere. If you are not buying, you’re paying rent and your landlord is in it for the money. If you are spending $2000 a month on rent, that adds up over time. If you rent for five years, that’s a whopping $120,000! Stop throwing your money and your financial freedom away by renting. Find your dream home at the John L. Scott Real Estate highly reviewed app here. 

    We can help, call Jana today at 425-310-2340 #JanaSellsHomes

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