As of August 2022, the real estate market in Georgia (particularly in its capital Atlanta) is starting to swing in the favor of buyers. This means the demand for homes and other properties is starting to go down, making it the perfect time to look into real estate investing.
The median price of a home in Atlanta is about $428,500, which is higher than the rest of the state, but much lower when compared to other major U.S. cities. Atlanta is also a bustling city with a growing population, many job opportunities, and a generally low cost of living. All of these factors make Atlanta, Georgia a great place to invest in real estate, in addition to these four benefits.
The most obvious benefit of investing in Atlanta real estate (and generally anywhere), is that you can generate a steady flow of cash. When you purchase a property, you can rent it to tenants, and the monthly rent they pay you will be an additional monthly income.
Passive income is income that you don’t have to work for every day, as you would with the income you earn from a traditional job. Owning real estate (and renting it to tenants) is one of the most well-known ways to earn passive income.
Real estate investments are known to be a great way to protect yourself against inflation. While the prices of goods and services are rising, you’re allowed to (reasonably) raise the prices of rent because property prices are among the goods that are increasing in price due to inflation. This protects you financially, especially when it comes to property taxes, and helps keep up with property maintenance.
The most common type of property that people invest in is a residential property, which is a single or multi-family home. However, residential properties aren’t the only type of real estate you can invest in. There’s also commercial real estate, which includes properties like office buildings, malls/shopping centers, hotels, restaurants, and industrial buildings like factories and warehouses. Generally, commercial real estate is more expensive than residential, but you can make more money from commercial real estate.
Properties aren’t the only type of real estate that you can invest in. REITs are real estate investment trusts, and they’re the easiest way to invest in real estate. REITs are companies that own properties (usually more expensive properties like commercial real estate), and you purchase a share of these properties when you buy into a REIT. They also make regular dividend payments, so you’ll earn money regularly.
As with owning your primary home, you’re eligible for certain tax advantages when you invest in real estate. Examples of some of the expenses you can deduct include:
Also, if you choose to sell your property and you sell it for a profit, it won’t be taxed as income. Instead, it will be taxed as capital gains, which isn’t taxed as much as regular income. This leaves you with more money in your pocket.
One thing about being a property owner is that you’re the landlord by default. This means that when you rent your property to tenants, you’re responsible for the maintenance and general upkeep of the property. Property management can be a very daunting task, especially if you don’t live in the same city or state as your property. This means maintaining your property becomes less like passive income and more like income you work for.
The good news is that there are property management companies that can make property management in Atlanta much easier. These companies can take care of everything from upkeep to finding tenants so your property doesn’t stay vacant. This is good for vacation rentals as well, which are more likely to see vacancies than other types of properties. Thus, investing in real estate in Atlanta, Georgia may be a smart choice for you.
Of course, you’ll be able to enjoy these benefits no matter where you choose to invest in real estate, but Atlanta is a unique city. Even if you don’t live or work in the city, those renting your property/properties there will. Because Atlanta has so much to offer, you won’t have a hard time finding tenants to rent your property.