#1. Hedge Against Inflation

What happens is when you purchase a home, an investment property, you lock in your mortgage rate, it doesn’t go up and it doesn’t go down, but rents will rise over time. And as the dollar inflates, you’re actually paying down that mortgage with inflated dollars. As your income rises, you have more money and you’re paying down that mortgage. I’m sure if you’ve ever rented, or if you own a home currently as a primary residence, if you bought that home 5 years ago or 10 years ago, that rent or mortgage seems cheap today by comparison of today’s rents and mortgage rates. 

Let’s say you locked in a rate, a mortgage at $5,000 today, in 10 years you might look back on that $5,000 and go, “Wow! Can you believe I’m only paying $5,000 in mortgage?” That same house would be a $10,000 mortgage. You had yourself against inflation as the dollar value falls. Your mortgage stays the same and your rents are rising and you can pay that debt back with cheaper dollars. That’s the number one way.
 
#2. Appreciation

Appreciation is passive money that you’re earning over time as the value of your property rises in value. This is you sitting back and doing nothing other than maintaining the property and it increases in value. Now, of course, real estate goes up and it goes down and sometimes it can go down a lot.

Sometimes it can go up a lot, but over time over the long-term horizon, your home will appreciate in value. It’s simple supply and demand. Real estate is a hot supply in general, around the country. And so over time it will appreciate in value. You’re going to be earning money via appreciation that you really don’t have to work for at all.

#3. Equity Pay Down by Tenant

When you purchase a property and you lock in your mortgage, normally when you buy a home, you’re paying that down yourself. Over time, you have a home with all your equity built in because you paid all that money into it. But with an investment property, now, someone else is paying down that mortgage for you. You’re gaining equity because someone else is paying that down for you. Then you couple that with appreciation, and at the end of the day, in 30 years, you’ve made quite a bit of money because someone paid down your mortgage and that house has appreciated in value.

#4. Depreciation = Tax Savings

Depreciation are paper losses that the government allows you to take on your taxes so that it reduces your taxable income. These are not actual losses. These are paper losses, and it reduces your taxable income. You can pay less in taxes. The government wants people to buy real estate. They want people to provide homes for other people. And so by doing so, they give you a tax benefit called depreciation. Talk with your CPA about how that could work, but it can save you quite a, of money on your taxes each year.


Are you looking to buy an investment property in San Diego County?

I’m a Top Selling real estate agent and I love what I do. It’s my passion, it’s my job, and it's where my heart is. My goal is to help people find their dream homes while also helping them get the most for their current one. Buying or selling a home can be stressful but with me as your agent, we'll make this process seamless and enjoyable for you.

You deserve an exceptional experience when selling your home - that's why I'm committed to making sure every step of the way is smooth and easy from start to finish. We'll work together to understand your wants and needs in a home, and craft a buying strategy designed specifically for you. 

I know how important this transaction will be for both of us which is why I want you to feel comfortable throughout the entire process. 

Contact me today at 858-281-2568 or email curtis@sandiegohomes.io to get started selling your home with me.

I'm not the highest volume agent in San Diego, nor am I the one with the longest time in the business. However, I focus on being the most effective in delivering a fantastic experience and HIGHLY probable outcome based on your goals

Send me an email, text or call me today to get started.


Warmest Wishes, Curtis Chism

Call me anytime at 858-281-2568
curtis@sandiegohomes.io

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