Everywhere you turn, you’ll find advice telling you where you should put your money, from a 401(k) or IRA to gold, stocks and CDs. While none of these are bad options, per se, they may not give you the highest return on investment and there’s one thing they can’t offer: control. After all, you can’t raise the interest rate you earn on a CD, nor can you increase the value of your stock portfolio or the cost of gold.
If you want true control over your own investment, it’s time to consider the benefits of investing in rental properties in Utah. While investing in Utah real estate is a bit more complicated and hands-on than, say, buying and holding stock, it has the potential to provide you with stable, passive income for the rest of your life.
Control Risks with Utah Real Estate
People tend to be more comfortable investing their money when they are actively involved in the decision-making process, and investing in real estate allows YOU to control your own risk. The Utah real estate market is certainly less volatile than the stock market, and much easier to understand. You’re buying something tangible, and you determine how risky you want your investment to become by deciding how much leverage you want to use.
How Does Leverage Work?
Real estate is the only investment that allows you to buy something so expensive with very little of your own money. Leveraging is basically borrowing money to fund your purchase, and the amount of leverage you use amplifies your risk and reward, allowing you to control more assets and potentially enjoy a much higher return on investment (ROI). The greater the leverage you use, the more equity in the property increases or decreases with changes in property values.
The average unleveraged ROI for residential income property is 10.2%, making it an excellent and low-risk investment strategy. With a 25% down payment (or leverage), you can increase your return to over 20%!
Reduce Your Taxes
Not only does Utah real estate investment allow you to increase your potential through leverage, you can also reduce your taxes. Actively participating in the management of a rental property allows you to enjoy a multitude of tax deductions, from the mortgage interest you pay on your loan and your insurance premiums to the cost of routine maintenance and travel. What other investment strategy offers this?
Actively Participate in Growing Your Wealth
Finally, purchasing Utah income properties allows you to take an active role in increasing the value of your investment and growing your wealth over time. Rather than sitting back and waiting for your investment to generate a return, you can make improvements to the property like painting the trim, adding landscaping and remodeling to see immediate returns and increase the amount of rent you can charge.
If you’re ready to take control of your financial future and your investments, look no further than Utah income properties. Generate long-term, passive income, actively work to increase the value of your properties and use leverage to multiply your potential returns. What else could you ask for? To learn more, contact the team at Red Sign today!