We all wish to earn good returns on the investments made. Though investments can turn out to be risky as the economy is uncertain and unpredictable. Just like no one ever expected lockdown in covid, there was a huge downfall in the market. Especially for those people who invested in stocks. Investing in real estate is better because the value of property certainly appreciates in long run. Also, you can rent out your property and make a good income from it.
If you follow the tips of investor and CEO of Mortgage Now Inc., Jim Marchese, you should wait for the right opportunity to get the loan at low-interest rates. Also, you have to show yourself as a low-risk borrower. For this, you have to maintain a good credit score and consistent earnings for the past 2 years. These points will help you to save your money on mortgage rates.
Also, visit different lenders so that you can make a good comparison among them. As per him, investing in real estate is a better option in the long run. Also, you will get the benefit of avail of tax breaks from it. Stocks turn out to be unpredictable, even in the long run. Also, try to control your debts and try to cut down your expenses as much as possible. Though in the long-term, stocks are still beneficial but in the short run, many investors lose large sums of money as the stock market can easily crash at various points in time.
Following are some of the financial strategies you should adopt for the coming year:
- Invest in a big family home– If you are planning to buy or invest in a house, it is always said to buy a two-family house. You can split the cost in half by renting out a portion of the house. It is quite obvious that the property will appreciate in coming years, so you won’t regret this decision ever. You can also refinance a property to invest in another property to rent it or to sell it out.
- Low-interest rates– Always look for the factors which are favorable in reducing the interest rates. Also, you should focus on your earnings, credit score and DTI ratio, to get the loan at a reasonable mortgage rate. A small difference can make a huge cut in the expenses.
- 401k contributions– Many people are not aware of the benefits they can get from 401K contributions. As an employee, you should always go for it, if your employer participates in it as well. The amount is automatically get deducted from your paycheck and you will get the tax benefit. This income contribution isn’t taxable until one withdraws the amount.
- Long term perspective– It is always advised by Jim Marchese, to go for long-term investments whether stocks or real estate. Long-term will always bring in something for you, unlike short-term investments.
So, above are some financial strategies shared by a financial expert, Jim Marchese. These strategies will help you out with making accurate and profitable decisions.
