Are you still trying to figure out whether or not you should invest in Charlotte, NC real estate? Have you found yourself starting the search for homes for sale in Charlotte, looking for an agent, and wondering whether you should take the plunge?
When it comes to buying property, Charlotte NC is a great option. Here is a short list of reasons why:
● A real estate investment guarantees you passive income.
● The chances of a new real estate investment in the Charlotte area depreciating in value are rare.
● There are a lot of tax benefits that come with real estate investment homes.
● You get to become your own boss.
Many financial advisors will tell you that investing in real estate in Charlotte is a smart investment move when you find good prices on homes for sale.
Many of the richest people in the world have real estate as part of their investment portfolio.
Why?
Real estate investments come with tons of benefits.
Proper management of a rental property not only increases your gross income but also the value of your real estate investment as well.
Perks of Investing in the Charlotte, NC Real Estate Market
Consistent Cash Flow
With real estate investments, money generally comes from two sources:
- Rental income.
- Capital gains or appreciation (when you decide to sell the property).
Owning property in Charlotte will not only provide you with monthly rent payments, but also profits when you decide to sell.
Basically, your net rental income comes from subtracting your monthly expenses from the gross income.
If you make $3,000 in monthly rent and incur monthly expenses of around $1,000, your net income would be $2,000.
The best part about having a steady income from a real estate investment is that you can easily pay for other expenses including:
- Mortgage payments.
- Management costs.
- Property taxes.
- Utility, maintenance, and repair costs just to mention a few.
That means that any new Charlotte, NC real estate investment can sustain itself. And it can help you to lighten your financial burden, and free you to invest in other real estate down the road.
But, to make a decent rental profit from your rental property in Charlotte, you have to make sure its income is greater than its expenses.
Achieving this balance is an indicator of successful investments in real estate.
Otherwise, if you find that your investment property expenses are more than what it yields, you may start spending your own money to sustain the property.
And that would defeat the purpose of your investment property.
Value Appreciation
The biggest benefit of owning real estate in Charlotte, NC is value appreciation over time.
Basically, that translates to a win-win situation for you (and your real estate investment).
Your real estate investment property will make you money (rent) and grow at the same time (capital gains).
As any local real estate agent will tell you, appreciation is one of the many factors that make Charlotte a great city to invest in real estate in.
Generally, the median rate of real estate appreciation depends on a number of factors including:
- Time – The longer you hold on to your real estate, the higher your profits will be when you sell your investment property.
- Location – Your investment property’s location determines how fast your real estate investment’s value grows. Rentals in prime areas of the city of Charlotte will appreciate faster than rural properties.
- Property Type – Whether you own single family, multi family, apartments, student housing, or commercial properties will factor into the price your homes will be able to fetch on the market.
Notably, growing and thriving real estate markets are always an indicator of more demand for properties than supply.
Also, city areas with limited land tend to have faster appreciation rates for properties on average, as does any property with a great view.
Before you decide on a specific location for your real estate investment in Charlotte, make sure you look out for these hints that tell you about the potential of various properties and what the going rate of rent is in various neighborhoods.
Numerous Tax Benefits
Any investment property in Charlotte, NC can come with many tax benefits for real estate investors.
If you employ smart tax strategies, you will be able to earn more from your investment properties.
How can your investment properties benefit from property tax incentives?
Two words:
tax deductions.
A tax deduction is an amount the IRS allows real estate investors to deduct from their total taxable rental income.
The more deductions you have, the smaller your taxable income will be. And, if that’s the case, you’ll be able to keep more of your rental profits.
So, what are these tax benefits?
The best examples of real estate tax deductions include:
- Home insurance premiums.
- Mortgage and home improvement loan interests’ payments.
- Home maintenance and repair costs.
- Management expenses for your properties.
- Travel expenses (must be rental related).
- Utility costs.
- Professional and legal fees.
- Marketing costs.
- Depreciation expenses.
- Property taxes.
Thanks to the 1031 exchange tax benefit, real estate investors are free to swap properties for other homes with little or no tax obligations.
Just make sure that your homes are eligible for this tax benefit, as you would for any tax benefit.
Security
There are many reasons that can lead to you owning a rental property in Charlotte.
Sometimes, it can be because a temporary work relocation forces you to switch homes for a period.
Other times, it could be an inheritance you don’t want to sell because of its sentimental value.
Or you just found cheap homes for sale and invested in one because of its potential.
Whichever the reason, you may find yourself with a vacant property in Charlotte, NC.
Unfortunately, vacant properties can be expensive to maintain. You’ll either have to hire someone to look after the property or risk leaving it vulnerable to vandalism or squatters.
Having a tenant can change everything. That’s because, regardless of how far away you are from your property, you’ll be able to rest easy knowing there’s someone watching over it for you.
Tenants will also notify you of maintenance in their homes issues before they worsen, hence minimizing your maintenance costs.
The Bottom Line
In summary, there are so many benefits for real estate investors in or near Charlotte, NC.
The proper management of your Charlotte rental property not only increases your gross income but also the value of your investment.
This means that not only does your investment in the Charlotte real estate market grow with time, but you also get to enjoy a steady flow of rental income while providing homes to tenants.
If you're in need of assistance with any aspect of managing your investment homes in the Charlotte, NC area, get in touch with the experts at Dawson Property Management. Our friendly team has years of experience helping real estate investors maximize the ROI on their properties in and around Charlotte, NC.
Get in touch today, either by phone at (888) 239-7830 or by sending an email to
info@dawsonpropertymgt.com.
