Seven Benefits from Investing in Real Estate
These benefits you will experience while learning how to invest in real estate are what really make it so attractive.
Real estate investing attracts all types of people, businesses, and funding. It’s powerful. Most choose it for one or two of its most common benefits. But the best advantage of investing in real estate is the broad and deep array of perks awaiting people like you. Here are just a few that make this asset class so attractive.
1. Appreciation
There are ways to force the value of your real estate assets up. This is perhaps one of the most unique and powerful benefits of investing in real estate. You can add value by fixing up substandard properties, take it to a new level with improvements, and reposition properties for equity gains. While organic appreciation isn’t guaranteed it is one of the most significant ways to build wealth, without any effort. Let the market work. A rising tide lifts all boats.
2. Beat Inflation
Inflation is one of the biggest risks we all face. You can’t even hide your cash in a checking or savings account, bonds or under the mattress and expect it to stay at the same value anymore. Junk fees, low interest rates, and inflation mean that money is constantly devaluing. The only way to keep it at par or achieve positive growth is to invest, and real estate values and performance typically outpace inflation.
3. Hard Asset
All of the upside speculation and promises on any investment can be worth nothing. That gets worse when your investments have no real tangible assets that you can reasonably expect to control. Try as you might you’ll probably never influence the rise or fall of your Apple or Facebook stock. If the company goes bust, these days you don’t even have a paper stock certificate to use as kindling to keep you warm in the winter. Real Estate is different. Direct investment in real estate means you hold that real asset. Even if damage is done to the property the land is there, and its value will always rise in the long run.
4. Leverage
Want to be a millionaire? Here’s the formula; control a million dollars’ worth of property, earn a million, your worth a million. Of course; it’s not as easy as it sound and takes really hard to buy or control that much property or income but if your willing to make sacrifices in the beginning virtually within 10 years this can become your reality. Fortunately leverage makes it a lot easier to accomplish this, and faster. This can be via mortgages, private lenders, hard money loans or partnering up.
5. Cash Flow
Today the top priority of many individuals, businesses and funds is cash flow, and investing in real estate can deliver it. Whether you need to make more money in less hours per day, need passive income that will allow you to travel, or you’re facing retirement rents from real estate can put money in your account every single month.
6. Tax Benefits
The sad truth is that it doesn’t matter how much you earn or gain in life if the tax man takes it all. Investing in Real estate provides a broad range of tax protections, deductions, and write-offs. It can even provide multiple layers of protections and deductions. Earn more, keep more.
7. Pride of Ownership
It’s not just about the money. There is a lot of satisfaction that comes with owning a building or piece of land. It’s something you can point out to your children, show off to your friends, and can not only profit from but use to have a positive impact on the community.
I”ll See you at the closing table,
Marcel Umphery the “R.E.I. Successmaker”