WHY REAL ESTATE IS YOUR BEST BET
Sunday Jan 03rd, 2021Share
Ask any successful millionaire, and they’ll tell you – real estate is still the best long-term investment you can make.
1. IT IS SAFE
Nothing in life comes without risk, but when it comes to investing real estate you’ve already got a leg up. The real estate market is protected from short-term fluctuations that come with other investments and isn’t as volatile. That means from a risk-assessment point of view, it’s a low risk high reward in your investment portfolio.
2. BEST LONG-TERM INVESTMENT
Real estate beats out gold, stocks, savings, mutual funds and bonds when it comes to long-term investments. Why? Because it can produce a year-round rental income, great potential for future appreciation and will continue to increase in value over time. Not all real estate is equal, but the right choice will put you ahead of the curve in the long haul.
3. TAX BREAKS
Real estate owners can claim tax deductions on cash flow from investment properties in a way that other assets don’t offer. With such great tax benefits and low interest rates, you can take advantage of the desire for people to rent properties you own – subsidizing your overhead costs from the money you make.
4. REAL ESTATE IS STRAIGHTFORWARD
Start talking about investments, and you’ll start hearing a lot of lingo you may not understand. With real estate, it’s pretty simple. Yes, there will always be some hidden costs or unforeseen costs, but with an influx of cash and contingency budget, you’re protected. Brick-and-mortar is something everyone can do.
5. IT IS SECURE
Owning a home can offer you the benefits of a stable income from rentals and a sense of security. You’re protected when it comes to inflation, as prices go up with the market and your investment doesn’t lose value. Your capital will increase and that safety net is worth buying into.
6. IT GIVES YOU FLEXIBLE OPTIONS
Real estate isn’t just about buying and selling. You can buy a house and flip it. Or rent out your property for ongoing cash-flow. If not, you can always sell it. Or real estate can be refinanced, rehabbed and rezoned. You can develop your property, lease it or subdivide it. You can add on parcels. At the very least, you didn’t just buy a house, you bought land. And land does not decline over time. People will always need land, and a place to live.
7. YOUR CASH IS FREE
Your cash is free in the sense that it isn’t all tied up. You can put down 10% to buy real estate and use a loan with low interest rates to grow your investment. Combine that with outstanding return rates, tax advantages and a good strategy – and you are in control. And the longer you hold on to your investment, the more it appreciates meaning you increase your profit margin. Real estate is a bankable asset that you can leverage to your advantage.