Benefits Of Maxing Out 401K Vs. Rental Property
Reduced Taxable Income
Besides housing, taxes are the most significant expense for an average household. Tax planning strategies should always be at the forefront of any decisions you make.
When you buy a rental property as an investment; YOU are directly responsible for the investment returns. Rental property investment returns depend on your skills to find a great deal, negotiate a deal.
In addition to your monthly cash flow, the rental property also appreciates. San Francisco, which is one of the best places for technology jobs, has seen a massive price appreciation. Even if you are not in tier-1 cities, the rental property typically appreciates at an annual rate of 2%.