Are you thinking of investing in real estate but don’t know where to start? Or perhaps you’ve been burned in the past and are hesitant to try again. Either way, understanding the real estate cycle is crucial to your success. In this blog post, we will explore the recovery phase of the real estate cycle, providing insights and tips for potential investors looking to bounce back.

Firstly, what is the recovery phase? As the name suggests, it is the stage when the real estate market begins to recover from a recession or downturn. This phase is characterized by low interest rates, increased demand, and rising prices. It’s a time when savvy investors can find great deals and make substantial profits.

So, how can you take advantage of the recovery phase? Here are some tips to keep in mind:

Research the market: Before investing in any property, it’s crucial to do your research. Look at recent sales data, rental prices, and local trends to get a sense of the market’s health. This will help you make informed decisions and avoid costly mistakes.

Focus on value: In the recovery phase, it’s important to focus on value rather than just buying the cheapest property available. Look for properties that have potential for growth or renovation, or that are located in up-and-coming neighborhoods. These factors can increase the property’s value and ensure a solid return on investment.

Be patient: While the recovery phase can be exciting, it’s important to be patient and not rush into any investments. Take the time to carefully evaluate each opportunity and weigh the risks and rewards. Remember, real estate investing is a long-term game, and a smart investment now can pay off in the future.

Work with an experienced investor: Real estate investing can be complex and daunting, especially for those new to the game. Consider working with an experienced investor who can provide guidance and expertise. They can help you navigate the market, identify opportunities, and make smart decisions.

In conclusion, the recovery phase of the real estate cycle is an exciting time for potential investors. By doing your research, focusing on value, being patient, and working with an experienced investor, you can make smart investment decisions and bounce back from any past setbacks. So why wait? Start exploring the opportunities of the recovery phase today and take the first step towards achieving your financial goals.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Governments can have a profound effect on the state of the real estate market. Policies, subsidies, and infrastructure projects will significantly influence the current and future prices of properties in an area. Learn more about why your research should include an in-depth analysis of government influences.

Zoning Regulations and Building Codes

Governments have been regulating land use for centuries, with zoning regulations and building codes undergoing frequent changes. Local governments create their own building codes, with requirements varying substantially between areas.

Consider the surrounding properties and ensure your property is zoned for the area’s intended use. For example, a residential property next to a commercial zone will have less value than a residential property in a residential area.

Regardless, homes that are up to code are generally more expensive than ones that need repairs or remodeling. When considering a property that needs work, understanding the extra costs should factor into your decision.

Local Goods and Services

Government-provided goods and services such as fire protection, law enforcement, water sanitation, schools, public transport, and roads make an area more attractive and drive prices upwards.

Locating an area where the government may be planning significant upgrades could help a savvy investor score a lower-priced property that will be significantly more appealing after the planned upgrades are complete.

Government regulations and services can impact the long-term growth prospects of an area. Zoning regulations and building codes often enforce restrictions that prevent investors from doing what they need with a property, such as developing a high-density living area. Every analysis must include the costs for the investor to comply with the local regulations and building codes.

Investors must also consider the property taxes and the level of government investment in public goods and services. These government-run projects can significantly influence rental prices and the future growth potential of the property, such as market rents, vacancy rates, population, income growth prospects, and overall property values.

Government Subsidies

Subsidies related to property markets provided by the government are often contentious issues. While the government’s goal is to stimulate the economy and make new houses more affordable to more people, you cannot ignore the influence a sudden influx of new buyers will have on house prices. Significant tax deductions and subsidies put more air into a housing bubble until it has the opposite effect as house prices rise to even harder to reach heights.

Any property investment requires careful analysis, and it’s often challenging to navigate the government’s intentions or even trust they know what they are doing in the case of subsidies. However, opportunities abound in any market; you just need to know how to find them. If you would like to get into the property market, but would rather avoid costly mistakes, talk to investment professionals immersed in the property market every day. The best advice will help you buy the right property at the right price so that you can invest with confidence.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Many variables will influence your property investment decision when considering your options. Demographics is just one, but it has a critical role in adding value to your property portfolio through making good choices. Learn more about how demographics will influence your investment decision.

Demographic Factors Affecting Real Estate

Real estate demographics data are quantifiable data that analytically describe a community. A study of demographics will include age bracket, income, crime risk, school quality, employment opportunities, and population growth, all of which will impact your investment and the returns you can achieve.

Research the Real Estate Demographics Before Investing

Demographics are critical to your investment research before buying real estate because they are the next best thing to a crystal ball when predicting the future value of real estate investments in an area. For example, a location with a decreasing or increasing population is a good predictor of the future market.

Another key demographic is the crime rate. This information will give you essential insights into your prospective rental pool and the possibility of increased rental costs such as maintenance.

While we would all prefer to live in a low-crime rate area, many new investors make the mistake of overlooking this essential real estate demographic. As such, they increase their risk exposure and their ability to improve their portfolio with capital gains.

Job Growth and Real Estate Values

Research into the job market of an area is another factor to consider. If there are no employers or none are hiring, then the location is less appealing as a place to live. You may find that you can not charge the rent levels you need to create a positive income stream.

Carefully examine the employment and income data for an area, and extend your search into the surrounding areas as well. Many people are prepared to sacrifice travel time for slightly cheaper rents if the commute is reasonable.

How Amenities Can Impact Real Estate Investments

Families will search for affordable places to live by balancing rental values against easy access to good quality schools for their children. An area that is local to good schools will generally improve the value of your investment and provide a greater pool of rental possibilities.

For example, Worcester, MA, is the second largest city in New England and provides an excellent example of how educational opportunities can be a critical factor influencing the quality of an area.

Many of the suburbs around Worcester have some of the nation’s worst performing schools, with a correspondingly disappointing result in the real estate values. However, one suburb, Westwood Hills, is an exception, as the schools have a solid rating. The local real estate also achieves higher median values than the surrounding areas.

Your research into real estate demographics should seek out these anomalies as they are often less well known to other investors and, therefore, less competitive to enter.

Rental Versus Owner-Occupied Demographics

The ratio of owner-occupier versus renters real estate demographic data is another indicator that can help you achieve more value in your real estate investments.

Owner-occupiers tend to take more pride in their property’s appearance, so streets with more owner-occupied homes tend to appear well looked after and more appealing. A house on a good-looking street will generally fetch a higher price than a street full of rental stock whose landlords put little value in the property’s general appearance.

As you can see, researching a prime real estate investment can be overwhelming to investors entering the market. Fortunately, you can ensure you purchase a well-positioned property by talking to the experts who are already successful real estate investors and can help you do the same.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

So, what happens to real estate investments when interest rates rise? With the global economy in its current state of disarray, inflation is trending upward at an alarming rate. It was only a matter of time before the reserve bank stepped in to flatten the curve with an interest rate hike. Keep reading to find out why interest rates rise and how they influence the real estate market.

Why Do Interest Rates Rise?

As with most other market factors, interest rates are influenced by the supply and demand for credit. When credit demand increases, the interest rates will rise, while a decrease in demand tends to reverse interest rates.

When more money is available to borrowers, the more money there is in the economy.

Inflation will also cause higher rates. When the inflation rate increases, the Federal Reserve will raise interest rates. Credit is more expensive, which reduces the amount of money in the economy.

Of course, the economy is more complex than our straightforward explanation. The Federal Bank needs to maintain a delicate balance to create a stable economy, and interest rates are a significant part of their strategy.

How Sellers are Affected by Rising Interest Rates

Real estate values are inextricably linked to the Federal Reserve’s interest rate. Higher rates make mortgages more expensive, which reduces the pool of available buyers.

For example, a seller trying to attract buyers to a $400,000 property would suddenly find that their pool of prospects could only afford $355,000 should the interest rates rise by 1%. If interest rates kept rising suddenly, it could still bring prices down even further. There’s nothing quite like uncertain interest rate hikes to spook investors out of the market, which creates more opportunities for savvy property buyers.

Profit could still be made on a property that has been held for a while, but sometimes, the best investment strategy may be to hold for a while longer until the market improves.

Rising Interest Rates and Property Value

Rising rates will affect cash flow and housing prices. However, a growing economy that keeps pace with mortgage payment increases may not have as much of an impact on real estate values.  For example, if monthly mortgage payments were to increase by $240, but a strong economy enabled employers to deliver a 5% wage increase, the extra wages could offset the increased mortgage costs and keep property values stable. However, the economy would need to keep growing to prevent the market from plateauing.

Focusing on your financial goals and sticking to your investment strategy is critical to creating a profitable property portfolio. Housing prices invariably trend upwards despite occasional dips in the market like we are currently seeing. For this reason, buying and holding for the long term is almost always the key to successful property investment.

While property investment is a long-term strategy, buying the right property at the right price will improve your gains, but it’s not easy. Researching the market and analyzing the demographics of an area are time-consuming and challenging tasks. Fortunately, there are experts available who have made all the mistakes and are willing to teach you how to avoid them. Check out the website today to learn how you can improve your future cash flow through real estate investing.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

When you have money you want to put to good use, you may be tempted  by any number of investment options. Two popular options that often come to mind include mutual funds and real estate. But which one truly comes out on top and why? Today, we will explore that.

What Are Mutual Funds?

Mutual funds pool money together with other investors. Supplemented with a portfolio, you receive a group of stocks, bonds, or additional securities in exchange for your money. 

The value of the portfolio’s assets divided by the amount of shares is what determines the pricing of mutual funds called the NAV, or net asset value. However, know that the investor doesn’t actually own the assets themselves—only the shares.

Also note that each mutual funds investment carries their own goal, portfolio and risks. Fees can potentially arise and cause a reduction of returns which might make mutual funds not a great option for you.

What About Real Estate?

On the other hand, real estate is another way to invest your money. Real estate investing is the process of buying, owning, leasing, or selling properties (land or buildings) for profit. 

Real estate usually falls into four distinct categories:

• Residential: homes

• Commercial: businesses

• Industrial: warehouses, factories

• Land: farming, ranches

Investing in real estate can take on many different forms. Maybe you choose to invest in properties directly and rent out units. Maybe you are just looking to diversify your portfolio and would prefer to take a more indirect approach to real estate.

No matter your needs or preferences, real estate can accommodate you.

Real Estate: The Better Investment Option?

Investing can be a risky business. Obviously, you want to be ensured when putting your money out there. 

Making up 60% of the world’s wealth and assets, real estate investing has previously proven itself to be a sound way to invest your money.

There are many benefits of investing in real estate, including:

• Leverage, or the borrowing of capital to increase the potential profit, allows you to invest when you cannot buy the property yourself.
• Your investment in real estate provides ways to save on taxes, too. Your profits can be listed as capital gains with lower tax rates, and overtime, lower the tax basis with depreciation of your properties.
• Finally, you’ll have more control over your real estate investments than you would with mutual funds. Instead of waiting for a profit of a stock, you are the person in  charge of prices, improvements of the property, and other forms of revenue at all times.

Bottom line: real estate comes out on top as an investment option that is always relevant, accessible, and meaningful. While you cannot always predict what a market will look like, you can rest easy knowing that your assets are physical with evident value, unlike mutual funds, which can fluctuate wildly.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Do you know the difference between active and passive real estate investing and, more importantly, which might fit the bill for you and your current situation? Learn more about these two different real estate investment strategies and which will work best for you.

Active Versus Passive Real Estate Investing – What’s the Difference?

Many inexperienced real investors will consider real estate investing as a largely passive income stream. However, once they start researching, they soon find that it’s not as hands-off as they first thought. Still, that doesn’t mean a passive income isn’t out of reach; you just need to know which strategy will get you there.

Active real estate investing is what most people will have in mind when considering purchasing an investment property, but active investing can take a few different forms, including:

• Wholesaling
• Flipping
• Renovations and developments

Regardless of how you enter active real estate investing, you will be heavily involved in various parts of the process. Whether you are a hands-on DIY investor or plan to use a team of professionals, the amount of time and energy required to successfully enter active real estate investing can be equal to a full-time job or more. It can also require significant capital and a certain degree of risk.

Passive Real Estate Investing

Passive real estate investing is all about working with an active investor and purchasing the right investment at the best price and receiving the returns month after month, with your role primarily being a hands-off one.

The Active investor is busy doing the following:

• Researching the market.
• Marketing and finding the right deals.
• Doing due-diligence on the properties.
• Negotiating and closing the deal.
• Arranging financing
• Managing the team.
• Taking care of renovations and improvements.
• Property management
• Tenant management.
• Keep up to speed with continuing training and education.
• Investor reporting and relations.
• Coordinating final exit plans for the property.

The Passive investor’s involvement is usually limited to:

• Provide capital (money)
• Qualify for financing (if needed)
• Share in the profits (watch their payments come in).

Which Real Estate Investment Strategy is Right for You?

It really depends on how busy you want to be.

If you have the time, energy and experience to be an active investor, it can be very lucrative.

On the other hand, if you are looking for a hands-free type of investment that is secure and offers a variety of different ways to profit – then being a passive investor may be a better fit.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

For more investments, you have no choice but to pay the market price for whatever it is you’re buying. If an ounce of gold costs 1900 dollars, you pay 1900 dollars. You put in the asking price, and that’s that. It makes sense, it’s reasonable- but it’s not the smartest way to turn a profit on your investment. Wouldn’t it be neat if you could find someone else to help you pay for the investment you’re making, while still allowing you to keep 100% of the profit earned?

With real estate, that’s possible. Leverage is when you use borrowed capital in order to increase the potential return on an investment. In practice, this typically looks like borrowing money from a bank in order to purchase a property.

Banks will typically cover 75-85% of the cost of a property, and you make a down payment for the remainder. This limits the amount of money you have to invest in the first place, which is nifty, but what’s really nifty is what you’ll experience as your property appreciates value.

Properties can naturally gain value over the course of time. Say you purchase a property valued at 500,000 dollars, and the bank finances 80% of that. You’ve put 100,000 dollars into that property, with the rest covered by the bank. And let’s say that then, the property appreciates by 5%, or 25,000 dollars. It may seem at first glance that you’ve made a 5% profit on that investment, but that’s not actually the case! You get to keep 100% of the appreciated value- AKA, profit!- from that property, but the amount of money you paid remains the same.

With that in mind, you didn’t make 25,000 on a 500,000 dollar investment. You made 25,000 on a 100,000 investment. That is a 25% profit, and that’s great.

In this way, you can use leverage to turn a nice profit. By utilizing the resources that banks have to offer, you can maximize your financial gain and make the most of your money.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

You want to make investments that are going to pay off. That’s kind of the point of investing, right?

With the stock market, there are a few ways to see some payoff. It’s fairly easy to sell stocks, and if you sell them for more than you paid for them, then that’s a profit.

That’s all well and good, but it’s not really something you can count on. The stock might drop in value after you buy it. And while you have the stock, it’s not directly paying you anything. It’s just sitting there. Wouldn’t a truly fantastic investment earn its keep all on its own?

That brings us to real estate. Real estate can do just that for you. If you rent out a property, you’ll see profit in the form of what’s called “cash flow”. This is the profit you see when you rent out a property for more than its expenses cost.

The property owner charges the tenants of the building rent, which covers the mortgage and other expenses associated with the property. However, if the investors are playing smart, there’s some cash leftover from the rent payment after the expenses are paid. That investor could be you!

Real estate provides you with passive income. That’s money that you’re getting from something other than a regular job. Because of that, it’s clear that the stock market can’t always provide for you and your family the way real estate can. Real estate investments can be a great, reliable source of income. If you play your cards right, you get to see the profit without even having to regularly visit the property. The money comes to you, not the other way around.

Stocks are a popular investment, but that doesn’t mean they’re the best option. You can’t always count on your stocks to be worth what you need them to be worth, and you certainly can’t count on them to make you money passively.

Real estate is a superior investment for a lot of reasons, chief among them the consistent income it provides you with. If you want to see a consistent, regular profit, real estate just might be the investment for you.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

If you’ve got some extra money sitting in your savings account, you may be tempted to let it sit and collect interest (and dust). Although this may seem like a promising starting point, investing in real estate is where the best of investors typically hit a home run. Not only does this help to diversify one’s investment portfolio with a safer, more conservative option, but it also has a multitude of other benefits!

The Pros

Two, Four, Six, Eight, Who Do We Appreciate?

Unlike cars, which depreciate the moment we drive away from the dealership, houses tend to trend upward for years and years to come. It was reported in October 2020 that the current national rate of year over year home appreciation was 7.3%. That is tremendous growth that just keeps on growing!

Renting/ Building Equity

Unlike other investment options, real estate puts you in the driver’s seat. Many investors make an impressive profit by renting out their property to tenants. By doing this, the tenant becomes the one footing the bill for your monthly mortgage payment, not you. Not only this, but once the home is paid off , the house is owned by you, but paid off by the renters! When you look at it this way, it’s as if you only had to reach into your wallet for the down payment!

Control

Unlike the stock market, real estate investments offer more control on your end. Your actions and choices influence the end value of your investment property. You are not leaving things up to chance when you’ve got the control panel.

Naturally, with every investment opportunity, there is room for failure and misfortune.Luckily, real estate provides one of the most stable investing opportunities, but experts do have a few warnings for potential real estate investors.

But Wait––What Should You Watch For?

While there are so many pros to investing in real estate, it is always excellent to go into this game well-prepared for the unexpected. Here are some things to keep in mind:

Responsibility

Like anything in life, things can go awry. It’s best to know your tenants well enough to know if they will be fit to keep your property clean and functional. Risks may include damages to property, potential lawsuits, and tenants who won’t pay or need to be evicted.

Time & Money

Investing in real estate will require a downpayment to obtain the mortgage. The home may also cost money to fix up if needed. Additionally, you must remember that investing in real estate may be equally as draining of your time as it is on your wallet.

Knowledge

Often considered a rookie mistake, some real estate investors may purchase at the wrong time. It is important to maintain an understanding of how the housing market works, and to keep an eye on market trends, so that you can buy when the time is right. If you do this, you’re bound to make a nice return on your investment!

Ultimately, investing in real estate poses risks like any other investment. Fortunately, the rewards often outweigh the risks, making it a great investment opportunity overall.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

When researching a real estate investment strategy, many investors are surprised by the myriad ways to enter the real estate investment market. Two of the most popular methods are REITS (Real Estate Investment Trust) and individual property investing. How does each of these strategies stack up against the other, and which will give you the best returns on your investment?

What Are REITs

A REIT is an investment strategy that allows investors to own a piece of real estate without investing in a property directly. The REIT can be linked to a privately or publicly held company that owns income producing property.

Rather than buying a property, the investor purchases shares in a REIT in a similar fashion to how stocks and mutual funds operate. Investing in a REIT mitigates some of the risk of property investing, but you may be missing out on the advantages of a direct property purchase.

REIT Advantages

REITs deliver an income through dividend distribution, with regulations requiring that most of the profit be distributed to investors. A REIT purchase is as straightforward as purchasing shares. If you go through a broker, it may be possible to buy fractions of shares rather than whole shares, which significantly lowers the barriers to entry.

You can purchase multiple REITs to diversify your property portfolios, such as REITs that focus on commercial property or family homes for rent. Perhaps the most appealing advantage of a REIT is that one does not need a great deal of investment expertise.

REIT Disadvantages

There are no tax advantages to investing in a REIT. Owning a physical property opens up opportunities for investors to reduce their tax liabilities, such as mortgage interest and depreciation. However, investors are taxed on their dividend income.

Purchasing shares in a REIT gives you very little control over your investment because you have no say in how the properties in a REIT are managed.

As with mutual funds, there may be expensive ‘management’ fees involved with a REIT that severely limit the profits.

Purchasing an Individual Property

Investing in an individual property includes purchasing a traditional investment like rental homes or commercial premises.

Owning a physical property will create an income stream through rent and provide investment growth through capital gains as property values rise over time. Unlike REITs, investing in individual properties can deliver significant financial advantages that will make it more worthwhile.

Most individual property investors consider the rental income the single most significant advantage. Rental income can grow as investors use strategies such as small down payments and cheap loans to leverage their investment and buy more properties that generate even more income streams.

There are tax advantages through deductions and benefits when you purchase property directly. Your taxable income is reduced by property management fees, depreciation, repairs, property taxes, and other operating expenses.

Property values appreciate over time. While they can experience downward fluctuations in the short term, the long-term median prices of properties historically increase in value. You can also increase a property’s value through renovations such as new appliances, extra parking space, or an additional room. Improvements can make a property more appealing and justify a rental increase.

How you invest your money will depend on your investment style, how much you want to be involved in the process, and how much risk you are willing to take on. REITs are easy and relatively safe but have very few options for maximising your investment. However, an individual property will increase in value over time while also delivering a regular monthly income that comes with significant tax advantages.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Private capital lending is an alternative strategy for real estate investors to enter the property market, but what is private capital, who can use it, and what can they use it for?

Private Capital Definition

Private capital is an umbrella term for investment loans typically unavailable through public markets such as banks.

Private capital is accessed mainly by people with a high net worth who will use the funds for various investment scenarios, including real estate, private equity, and debt markets.

Institutional investors also frequently use private capital to make investments for others, such as insurance and pension funds.

How Do You Access Private Capital?

Access to private equity is different from traditional channels like a bank loan. Private capital reduces the risk to the lender by securing the loan against an existing asset owned by the investor. Collateral can be a house, infrastructure, or a block of apartments. Lenders are concerned with the ability of an investment to create a return that will benefit them and the lender.

Because an asset provides the collateral, the lender will usually have the option to take control of it should the borrower default on the loan. For example, if an investor purchases an investment home, the lender will be able to sell the property to recoup their funds if the investor fails to meet their obligations.

Terms for private capital are more flexible than most publicly available loans, as both lenders and borrowers can add terms and conditions that are unique to their circumstances. Flexible options include the duration of the loan, fees, and payment schedules, to name just a few.

Private Capital Advantages 

Private capital lenders are a lot more flexible in their terms and conditions because they work at a more personal level than the average bank or financial institution. Loans can be specifically tailored to an investor’s unique requirements. Also, a private capital lender will arrive at a decision much faster than a bank, which can be crucial for time-sensitive deals.

For example, an investor interested in a property that is a fixer-upper may only be able to secure a loan from the bank equal to the current value of the property. However, a private capital lender will consider lending funds on top to cover the renovation because they also have an interest in the property’s income potential.

Another advantage of private capital is that much of the red tape is removed during the approval process. Lenders know that an asset backs their funds, so they are not prone to the many regulations and restrictions that can slow a bank’s approval processes to a frustrating crawl.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

We all know investing is the best way to secure our financial future but finding the right investment vehicle can be challenging. Cryptocurrency has been trending of late but is this where you should be focusing your efforts? We discuss why your investment dollar is better off in real estate than the latest cryptocurrency fad.

The Disadvantages of Cryptocurrency

The original intention for cryptocurrency was to create an alternative currency, which is far from reality. While some online retailers and service providers take cryptocurrency, they are few and far between.

When you attempt to pay with cryptocurrency, what you would be paying today could be significantly more or less than its value tomorrow. A dollar in your country is always worth a dollar. The value of a Bitcoin from day to day is anybody’s guess.

Cryptocurrencies are new to the scene, and many governments are actively legislating against them because transactions are anonymous, making them a haven for transferring funds between criminals. Cryptocurrencies’ long-term viability is also unproven and not even close to being “safe as houses.”

Nobody needs cryptocurrencies, but everybody needs a roof over their heads, making real estate much more predictable and stable as an investment vehicle.

Digital currency values are incredibly volatile and impossible to predict from moment to moment. It’s common for values to tumble and wipe tens of thousands and even millions of dollars in value off a portfolio in a matter of minutes. For example, when China outlawed cryptocurrency mining, it wiped out more than $1.8 trillion of value from the world’s cryptocurrencies.

Digital currencies like Bitcoin are untraceable, and your investment is linked to an encrypted file on a fallible digital storage medium. Should your hard drive fail, you accidentally throw it in the bin during spring cleaning, or you lose your Bitcoin password, your fortune is forever lost. According to reports, the value of ‘lost’ Bitcoins in 2021 exceeded $148 billion. You are unlikely to misplace a house, but, unlike crypto, you can insure them against loss through fire and flood.

Advantages of Real Estate Over Crypto

While you can make a fortune in crypto just by buying at the right time, there’s as much risk you could lose it all. You may have to hold onto your real estate for a while, but there’s a lot more certainty that your property will be worth significantly more when it’s time to sell.

Properties never lose their value overnight, but you can lose your shirt with digital coin in a matter of minutes. The cryptocurrency marketplace is incredibly sensitive to investment activity. Should you want to liquidate your entire fortune, your activity could trigger a significant drop in value, making it difficult to recoup your gains. When you sell a property, you can be reasonably sure a professional agent will be able to get you fair market value.

Cryptocurrency investment shares many similarities with gambling, with big wins, even bigger losses, and very little in between. As an investment, it is perhaps the most unreliable and unpredictable strategy to date. Don’t risk your financial future to a cryptocurrency that may not exist in a few years and comes with zero protection. Investing in real estate requires a few more hoops to jump through, but in the end, you will still have your shirt and a comfortable retirement to look forward to. Find out how you can get into real estate investing without the hassle by talking to the property experts today.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

We’ve all heard the advice that diversifying your investments is the best way to protect yourself should one of your investment channels bottom out. It’s good advice, but there will always be investments that consistently perform better than others. This article will discuss mutual funds and how they stack up against real estate investments.

Real Estate Provides More Leverage

When purchasing $1 of mutual funds, you get one dollar’s worth of value. When you buy real estate, you are leveraging your investment dollar because you are paying a 20% deposit and mortgaging the rest.

If you have $100,000 invested in mutual funds, which doubles in value in 10 – 12 years, you have made $100,000. Not bad, but you can do better with property investing.

An investment in a $500,000 house that has increased to $750,000 nets you $250,000. It’s not unheard of for homes to double in value in that amount of time, potentially raising your gains to $500,000. That net gain is before we’ve even talked about rental income.

Essentially, the ability to borrow your real estate investment gives you significant leverage that is impossible with most other types of investment.

Mutual Funds Expense Ratios and Fees Can Devalue Your Investment

Mutual funds are popular as a hands-off type of investment. However, if you don’t pay attention, the fund expense ratios and fees can eat away the value. Management fees can also vary between funds, and some will pass on sales and marketing costs to their clients.

The fund manager’s expertise can also enhance or degrade the performance of your mutual fund. Your investment may be exposed to corruption, unnecessary trading, and selling losses at quarter’s ends to balance the ledger. Unfortunately, you have little control over these events other than to cash out and try your luck elsewhere.

While real estate investments come with costs, most property expenses can be used to reduce your tax liability. Mutual fund fees and expenses are not tax deductible. You must also pay tax on any capital gains the mutual fund produces every year.

Property Rarely Loses Value Over the Long Term

It’s possible to lose out no matter what investment vehicle you choose. However, over the long term,  property values are unlikely to be worth less than the amount you originally paid.

Mutual funds invest in the stock market, so an economic crisis can pose a significant risk to your capital gains. Many people at the cusp of retiring have been forced to rethink their plans after their mutual funds lost tens of thousands in value overnight.

Property investments are much less volatile. While property values do experience dips and troughs, they are rarely catastrophic. Short of a zombie apocalypse, a couple of decades of appreciation will still put you in front by a significant margin, even if you do happen to be selling at a low point.

Are you ready to consider property investing to secure your financial future? Increase your chances of purchasing income-producing property with potential by talking to experts prepared to share their experience and expertise. A solid real estate strategy will give savvy investors more leverage and options. Property investment also provides stability during economic strife than more volatile mutual funds.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Bonds are a relatively secure investment option, but safe choices in the money market rarely produce an attractive return. In contrast, real estate often outperforms bonds by a significant margin, especially over the long term. This article compares bonds against real estate investing to determine which one will give you the best value.

Risk vs. Return

Rental property investing will often yield high single-digit returns and often result in double-digit returns when you hold for long enough.

Government bonds are not complex investments, making them relatively straightforward for new investors to start growing their money. However, the built-in security of government bonds means your investment can lag behind inflation, possibly producing a negative net return.

On the flip side, property investment delivers equity appreciation over time and rental income that increases over the years.

Bonds and Income Taxes

Bond returns increase your tax liability, and you will also be lumped with capital gains tax on the increased value of your bonds.

Property can also attract capital gains tax when you sell, but you have the advantage of offsetting your liability with depreciation. Claiming for depreciation means you can deduct a portion of the property’s value every year against its income, making it one of the most lucrative tax breaks of any investment strategy.

Real Estate is an Excellent Hedge Against Inflation

While real estate investments require more capital and time to get into, and your money is not as liquid as other assets, other advantages will more than offset these inconveniences.

Property values will tend to track inflation. So, as the price of goods and services creeps upwards, so too will the value of your property. You also get the advantage of an income stream that tends to follow the CPI (Consumer Price Index).

Eventually, your monthly rental income will outpace your mortgage and other expenses to produce a positive cash flow. Of course, you will need to pay tax on this income, but you can offset that burden by using your equity and improved cash flow to acquire more property.

Real estate investing is the way to go if you want to ensure your investment dollars are worth more than you paid for them when you retire. When you add the potential for capital gains on the passive income stream, real estate investing takes the lead over bonds by a wide margin. Yes, bonds are almost as safe as houses, but the meager returns are far from exciting.

As we mentioned, purchasing investment bonds is not difficult, making them an easy path to investing. However, if you want to make your money work harder for you so you can enjoy a more comfortable retirement with options, real estate investing could be the right vehicle for you. Unfortunately, locating the best properties in the best neighborhoods can be challenging for inexperienced property investors. Take the stress out of property selection and reduce your risk exposure by partnering with the experts. Contact us today to find out more.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Why Real Estate is Better Than Stocks

Stocks are a straightforward, no-fuss investment strategy for putting money away for the future. However, the stock market has inherent risks that can put investors at a significant disadvantage compared to real estate investing. Learn why property investing is the best strategy for building long-term wealth.

Real Estate vs. Stocks: Which Is the Better Investment?

Many Americans diversify by investing in real estate and the stock market. The U.S. Census Bureau reports that 65% of residential properties are owner-occupied, and 55% of U.S. citizens contribute to an employer’s retirement plan, which is usually in stocks or a mutual fund. 

Diversifying your investments is sound advice, but If you want to get the best performance out of your investment dollar, you should know where to focus your efforts to maximize your gains. 

Real Estate Investment Advantages

Even though buying and selling real estate is a complex and legally intensive task, professionals handle the most challenging parts of the job. Most investors only need to focus on finding the right property at the right price, holding it for the long term, and selling it for a higher price after enjoying years of tax concessions and rental income. 

There are always going to be maintenance and tenancy issues, but even here, a good property manager can all but make your property investment a passive one. 

For the most part, property prices tend to keep pace with inflation, ensuring they grow in value from one decade to the next. Property investment also delivers tax advantages, with deprecation, wear and tear, and other property ownership costs reducing your tax responsibilities. In contrast, dividend income from stocks will increase the tax you need to pay, even if their current market value is less than what you paid come tax time. 

Stock Investing Disadvantages

Stock investments are easy to liquidate and diversify, but these advantages come at a cost.

Stock prices follow the mood of the market. A panicked market can bring prices crashing down to wipe out your capital gains, even though you may have been holding the stock for decades.  

During periods of economic unrest, stock owners are always the first to feel the pain. Should companies you have invested in go bankrupt, it can wipe out the entire value of those stocks, with no hope of recovery.

Real estate is unlikely to suffer the same fate because everybody needs a roof over their head, regardless of the state of the market. 

The extra liquidity of stocks means it’s easy to sell on an emotional whim when the most sensible strategy would be to hold for a more market correction. It takes more effort to sell a house, making it almost impossible to offload it in a panic. 

Real estate investing is unmatched in flexibility, tax incentives, and income production if you are researching strategies to diversify your investments away from stocks. While finding a property with potential can be challenging, partnering with the right team can ensure the security of your financial future with professional advice and guidance on every aspect of property investing.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

So, what happens to real estate investments when interest rates rise? With the global economy in its current state of disarray, inflation is trending upward at an alarming rate. It was only a matter of time before the reserve bank stepped in to flatten the curve with an interest rate hike. Keep reading to find out why interest rates rise and how they influence the real estate market.

Why Do Interest Rates Rise?

As with most other market factors, interest rates are influenced by the supply and demand for credit. When credit demand increases, the interest rates will rise, while a decrease in demand tends to reverse interest rates. 

When more money is available to borrowers, the more money there is in the economy. 

Inflation will also cause higher rates. When the inflation rate increases, the Federal Reserve will raise interest rates. Credit is more expensive, which reduces the amount of money in the economy. 

Of course, the economy is more complex than our straightforward explanation. The Federal Bank needs to maintain a delicate balance to create a stable economy, and interest rates are a significant part of their strategy. 

How Sellers are Affected by Rising Interest Rates

Real estate values are inextricably linked to the Federal Reserve’s interest rate. Higher rates make mortgages more expensive, which reduces the pool of available buyers.

For example, a seller trying to attract buyers to a $400,000 property would suddenly find that their pool of prospects could only afford $355,000 should the interest rates rise by 1%.

If interest rates kept rising suddenly, it could still bring prices down even further. There’s nothing quite like uncertain interest rate hikes to spook investors out of the market, which creates more opportunities for savvy property buyers.

Profit could still be made on a property that has been held for a while, but sometimes, the best investment strategy may be to hold for a while longer until the market improves. 

Rising Interest Rates and Property Value

Rising rates will affect cash flow and housing prices. However, a growing economy that keeps pace with mortgage payment increases may not have as much of an impact on real estate values. 

For example, if monthly mortgage payments were to increase by $240, but a strong economy enabled employers to deliver a 5% wage increase, the extra wages could offset the increased mortgage costs and keep property values stable. However, the economy would need to keep growing to prevent the market from plateauing. 

Focusing on your financial goals and sticking to your investment strategy is critical to creating a profitable property portfolio. Housing prices invariably trend upwards despite occasional dips in the market like we are currently seeing. For this reason, buying and holding for the long term is almost always the key to successful property investment. 

While property investment is a long-term strategy, buying the right property at the right price will improve your gains, but it’s not easy. Researching the market and analyzing the demographics of an area are time-consuming and challenging tasks. Fortunately, there are experts available who have made all the mistakes and are willing to teach you how to avoid them. Check out the website today to learn how you can improve your future cash flow through real estate investing.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Many variables will influence your property investment decision when considering your options. Demographics is just one, but it has a critical role in adding value to your property portfolio through making good choices. Learn more about how demographics will influence your investment decision.

Demographic Factors Affecting Real Estate

Real estate demographics data are quantifiable data that analytically describe a community. A study of demographics will include age bracket, income, crime risk, school quality, employment opportunities, and population growth, all of which will impact your investment and the returns you can achieve. 

Research the Real Estate Demographics Before Investing

Demographics are critical to your investment research before buying real estate because they are the next best thing to a crystal ball when predicting the future value of real estate investments in an area. For example, a location with a decreasing or increasing population is a good predictor of the future market. 

Another key demographic is the crime rate. This information will give you essential insights into your prospective rental pool and the possibility of increased rental costs such as maintenance. 

While we would all prefer to live in a low-crime rate area, many new investors make the mistake of overlooking this essential real estate demographic. As such, they increase their risk exposure and their ability to improve their portfolio with capital gains. 

Job Growth and Real Estate Values

Research into the job market of an area is another factor to consider. If there are no employers or none are hiring, then the location is less appealing as a place to live. You may find that you can not charge the rent levels you need to create a positive income stream. 

Carefully examine the employment and income data for an area, and extend your search into the surrounding areas as well. Many people are prepared to sacrifice travel time for slightly cheaper rents if the commute is reasonable. 

How Amenities Can Impact Real Estate Investments

Families will search for affordable places to live by balancing rental values against easy access to good quality schools for their children. An area that is local to good schools will generally improve the value of your investment and provide a greater pool of rental possibilities. 

For example, Worcester, MA, is the second largest city in New England and provides an excellent example of how educational opportunities can be a critical factor influencing the quality of an area. 

Many of the suburbs around Worcester have some of the nation’s worst performing schools, with a correspondingly disappointing result in the real estate values. However, one suburb, Westwood Hills, is an exception, as the schools have a solid rating. The local real estate also achieves higher median values than the surrounding areas.

Your research into real estate demographics should seek out these anomalies as they are often less well known to other investors and, therefore, less competitive to enter. 

Rental Versus Owner-Occupied Demographics

The ratio of owner-occupier versus renters real estate demographic data is another indicator that can help you achieve more value in your real estate investments.

Owner-occupiers tend to take more pride in their property’s appearance, so streets with more owner-occupied homes tend to appear well looked after and more appealing. A house on a good-looking street will generally fetch a higher price than a street full of rental stock whose landlords put little value in the property’s general appearance. 

As you can see, researching a prime real estate investment can be overwhelming to investors entering the market. Fortunately, you can ensure you purchase a well-positioned property by talking to the experts who are already successful real estate investors and can help you do the same. 

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Governments can have a profound effect on the state of the real estate market. Policies, subsidies, and infrastructure projects will significantly influence the current and future prices of properties in an area. Learn more about why your research should include an in-depth analysis of government influences.

Zoning Regulations and Building Codes

Governments have been regulating land use for centuries, with zoning regulations and building codes undergoing frequent changes. Local governments create their own building codes, with requirements varying substantially between areas.

Consider the surrounding properties and ensure your property is zoned for the area’s intended use. For example, a residential property next to a commercial zone will have less value than a residential property in a residential area.

Regardless, homes that are up to code are generally more expensive than ones that need repairs or remodeling. When considering a property that needs work, understanding the extra costs should factor into your decision.

Local Goods and Services

Government-provided goods and services such as fire protection, law enforcement, water sanitation, schools, public transport, and roads make an area more attractive and drive prices upwards.

Locating an area where the government may be planning significant upgrades could help a savvy investor score a lower-priced property that will be significantly more appealing after the planned upgrades are complete.

Government regulations and services can impact the long-term growth prospects of an area. Zoning regulations and building codes often enforce restrictions that prevent investors from doing what they need with a property, such as developing a high-density living area. Every analysis must include the costs for the investor to comply with the local regulations and building codes. 

Investors must also consider the property taxes and the level of government investment in public goods and services. These government-run projects can significantly influence rental prices and the future growth potential of the property, such as market rents, vacancy rates, population, income growth prospects, and overall property values.

Government Subsidies

Subsidies related to property markets provided by the government are often contentious issues. While the government’s goal is to stimulate the economy and make new houses more affordable to more people, you cannot ignore the influence a sudden influx of new buyers will have on house prices. Significant tax deductions and subsidies put more air into a housing bubble until it has the opposite effect as house prices rise to even harder to reach heights. 

Any property investment requires careful analysis, and it’s often challenging to navigate the government’s intentions or even trust they know what they are doing in the case of subsidies. However, opportunities abound in any market; you just need to know how to find them. If you would like to get into the property market, but would rather avoid costly mistakes, talk to investment professionals immersed in the property market every day. The best advice will help you buy the right property at the right price so that you can invest with confidence. 

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

The housing market often reflects what’s happening in the economy. When times are good, there’s money in the economy to invest in housing. If times get tough, the Federal Reserve may intervene to reduce the pool of spending money. Unfortunately, when the Federal Bank starts looking at the possibility of an interest rate hike, it usually means there are leaner times ahead for homeowners and real estate investors alike. Keep reading to learn more about how the local economy influences the real estate market.

How Does the Federal Reserve Determine Interest Rates?

Many factors will cause the Federal Reserve / Central Bank to fiddle with interest rates. In general, though, it’s the state of the economy that determines the interest rate.

High interest rates make credit and mortgages more expensive, reducing the amount of money circulating in the local economy. Of course, some areas are harder hit than others when interest rates change.

The top end of the market takes a heavier hit due to significant price differences. After all, one percent of one million is a lot of money, but 1% of $400,000 can hurt more for lower to middle-income earners, which is the demographic where mom and dad investors have most of their finances tied up.

Why Are Interest Rates Critical to The Real Estate Market?

Interest rates influence the value of a property. When interest rates go up, credit gets more expensive, and property buyers’ borrowing capacity decreases. Buyers who may have been considering properties close to the city will need to look further out. In these cases, appealing suburbs outside the CBD can suddenly benefit from higher values.

Housing Starts Versus Home Sales

The housing market has two main sectors: home sales and housing starts. Home sales include established homes, while housing starts refer to new homes that have not yet been built.

The volume of housing starts, usually in brand-new suburbs with the latest, most up-to-date infrastructure, increases when the economy is full steam ahead. After all, who doesn’t love a brand new, shiny home that’s never been lived in before?

Housing starts will influence the local economy in many ways, including employment, land sales, raw building materials, and the businesses and support services that grow up around new suburbs. A weaker economy usually creates a corresponding drop in new home sales and a slight uptick in the sale of established homes.

Slow economies can have a dramatic effect on the housing market. Economic slowdowns influence the local economy as finance gets more expensive and the number of buyers in new home builds dries up. The reverse is true in a healthy economy.

Whatever the state of the real estate investment market, you can always find lucrative opportunities when you know where to look. However, it can be challenging to know where to put your investment dollars when you are not immersed in the property industry every day. Invest with confidence by talking with the experts who have successfully navigated the property market and consistently come out on top.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/

Many investors regard real estate as one of the best strategies to hedge against inflation because property prices over any given decade tend to trend upward. This article will discuss why inflation occurs and how it can affect your real estate investments.

What is Inflation?

The economy is dynamic, and many variables will impact inflation. However, at its core, inflation is a measurement of the increase in prices of goods and services over a period of time, including real estate costs and rent prices.

Inflation is influenced by the amount of money circulating in the economy. When more money is available, prices tend to rise, but there is also the expectation that prices will always go up eventually. A more straightforward way to think of inflation is that the dollar’s purchasing power degrades over time.

Real estate creates a reliable buffer against inflation because property prices increase over the long term. Investors also gain an advantage through cheaper interest rates and the ability to increase their yields by rising rental prices in line with inflation and supply and demand.

Why is Property a Reliable Asset Against Inflation?

Real estate investment is a long-term strategy. Property prices can fluctuate in the short term like any investment vehicle. However, holding an investment property over the long term is when the magic really happens.

As property prices rise, the original mortgage repayments remain reasonably stable. Of course, the Fed can make repayments more or less affordable if it decides to get aggressive with its interest rate adjustments. Even so, your repayment responsibilities will tend to balance out over the long term.

Rising property values are often matched by increases in rent. Should you keep a property for ten or more years, the value of the rent you can charge may have doubled, but your mortgage repayments will be similar to when you first bought the property. You will have effectively increased your rental yield two-fold or more.

Such increases in yields are difficult, if not impossible, to match in other investment vehicles. Plus, you also have the advantage of a significant increase in equity, as property values can often double or more over a decade.

In short, a long-term real estate investment strategy is an excellent hedge against inflation.

Investors can take advantage of lower interest rates to purchase property that will increase in value over time, often at higher rates than inflation. They can also pass on inflationary costs to tenants in the form of higher rents and profit from capital gains in property prices over the long term.

About Jacky Fils:

Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!

Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.

For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/