Real Estate Facts That Will Change Your Property Outlook

 

1.Investment and Wealth

- Real Estate Appreciation: Properties appreciate in value over time without direct intervention, with an average appreciation rate of 5-8% in most markets, exponentially growing your net worth.

- Rental Income: Buying and renting out properties can generate steady cash flow and help build a sizable nest egg for early retirement.

- Protection Against Inflation: Real estate values and rental income tend to increase with inflation, making it a reliable hedge against price spikes.

2.Market Trends

- Millennial Homebuyers: Millennials constitute the majority of homebuyers, with 45% of mortgages expected to be held by them. They prefer suburban areas and bigger homes.

- Housing Market Growth: The US housing market is worth $33.6 trillion, with a growth of over 50% in recent years.

- Sustainability: Climate resiliency and sustainability are becoming increasingly important in real estate, driven by frequent natural disasters.

3.Financing and Taxes

- Mortgage Rates: Rates are expected to stabilize at the low end of the 6.08-7.44% range in 2025 and 2026.

- Tax Benefits: Real estate investing offers tax benefits, including lower capital gains, refinancing, depreciation, and 1031 Exchanges.

- Loan Maturities: Nearly $1.8 trillion in commercial real estate loans are set to mature before the end of 2026, potentially affecting competition and tenant retention.

Other Key Facts:

-Low Barrier to Entry: You can start investing in real estate with a relatively small amount, such as 10-15% of the total investment.

-Control and Flexibility: Real estate investing provides control over your investment and flexibility in managing your properties.

-Stability: Real estate markets are less volatile than other investment markets, making them a relatively stress-free investment option.

If you are considering taking a step towards property investment,take the the time to understand fully every aspect of real estate so that you have a firm grasp. Once you're there ready to invest, reach to us for any kind of assistance by calling +254722 769 866/+254787 40 40 40.