Achieve Real Estate Success With Smart Investment Decisions
Financial Considerations and Potential Returns
Investing in real estate requires careful financial planning. Initial costs include the purchase price, closing costs, and potential renovation expenses. Additionally, ongoing costs such as property taxes, maintenance, and management fees should be factored into your budget. However, the potential returns can be significant.
According to the National Council of Real Estate Investment Fiduciaries, commercial real estate has historically provided annual returns ranging from 6% to 12%1. Residential properties can yield similar returns, especially in high-demand areas. By leveraging mortgage financing, investors can amplify their returns through the power of leverage, making it a compelling option for those willing to manage the associated risks.