Buying or selling? Call or text 952-314-9446.
You’ve saved for a rainy day or retirement. Congratulations but don’t get too comfortable yet; where is it invested? It’s estimated that over 25% of Americans have their long-term savings in cash instead of investments like stocks, bonds or real estate.
The memories of the financial crisis of 2008 are recent enough to understand why some people may want to avoid the stock market and real estate. Even though Wall Street and housing have rebounded considerably, uncertain investors are sitting on their cash. However, trying to avoid a bad decision can have serious costs too.
If your money is not earning at least at the current inflation rate, you’re losing the purchasing power of your dollars. Bankrate.com estimates the average money-market deposit yields 0.11% and the average five-year certificate of deposit currently yields 0.78%.
Rents are continuing to rise and there is a shortage of good, affordable housing. Single family homes have a significant advantage over many other types of investments. They have high loan-to-value mortgages available at fixed interest rates for long-terms on appreciating assets with distinct tax advantages.
The cash flows are considered to be one of the most attractive features of rental properties. Some investors think of it as a growth stock that pays substantial dividends. In the example shown below, a $125,000 rental with an 80% loan-to-value mortgage at 5% that rents for $1,250 per month, has a positive cash flow before taxes of $3,000 a year.
The rate of return on rental property can be substantially higher than other investments while allowing the investor control that isn’t available in alternatives.
Please note: I don’t handle rentals or property management. I work with buyers and sellers, and that’s where I can help you most.
Stay close to the market, without the noise.
Every so often I send a short, practical note: what Twin Cities homes did, prep tips that are worth the money, and neighborhoods worth a look. Sign up and you’ll also get this guide as a PDF to keep.
Thank you! You’re on the list.
I’m glad you’re here. Your PDF copy of this guide is ready below, and a quick confirmation is on its way to your inbox. Whenever you want to talk about your own home or a move, I’m a call or text away.
Thinking about buying or selling?
I’ve helped Twin Cities families buy and sell for about two decades, and I look at every house the way a builder does.
Call or text David Olson: 952-314-9446
[email protected] · DavidOlsonRealEstate.com
