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.
