If you’re like most people, your current income level doesn’t match your desires. Whether you want to buy a bigger house, take more vacations, or gain your financial independence, your day job might not accomplish all your money goals as quickly as you’d like. You can, however, boost your cash flow by taking on a side hustle that brings in some extra money. One profitable side hustle is investing in real estate. Real estate has an excellent rate of return and a smart way to build your wealth.
Here are five reasons why real estate is a great investment and the perfect side hustle.
Real estate provides better returns than the stock market without as much volatility.
Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
Flexible hours so you can work when you want.
One of the key benefits of working in real estate is that real estate is a flexible job that allows you to set your own hours and work when it’s best for you. You can even take advantage of virtual wholesaling which opens your potential of investing. Setting your own hours allows you to fit in around your main job (or even quit that job when you start making more at your side hustle!) Answer emails before work, show homes after your traditional 9-to-5 job, and advertise on the weekend. This makes real estate a perfect side hustle for those who are able take on a side gig and juggle two jobs.
Real estate values will always increase over time.
History continues to prove that the longer you hold onto your real estate, the more money you will make. The housing market has always bounced back from past bubbles that caused home appreciation to slip. Those who held on to their investments during those uncertain times, were rewarded when prices returned to normal, and appreciation is back on track. Being patient allows real estate investors in the top performing markets enjoy a windfall. Recently, the nation had a positive appreciation, resulting in many making millions of dollars in less than a year from flipping.
Unlimited earning potential.
When you invest in real estate, you’re not making an hourly wage, but you’re earning commission on transactions. So, the more transactions you do, the better your opportunity to increase your earnings.
This is perfect as a side hustle where where your time might be limited. Unlike an hourly wage, you have a chance to maximize your earnings.
Real estate investing comes with numerous tax benefits.
Who doesn’t love tax breaks? Real estate allows you to get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value) and other benefits.