7 Reasons Why Real Estate is the Smartest Investment

With the economy every changing and inflation on the rise, it’s no surprise that the amount of money you made 10 years ago barely gets you by now. With the economy in an ever-changing state, many individuals are turning to investment opportunities to make extra money, which can then allow them the opportunity to better provide for themselves and their families. In this blog, we explain why real estate is a wise investment to consider.

Bring in Positive Cash Flow

Perhaps the biggest benefit of deciding to invest in real estate it provides a regular income stream that is higher than what a normal stock dividend yields. Real estate investments secure assets and offer the financial security you wouldn’t otherwise have in other investments.

Leveraging to Multiply Asset Value

When you invest in commercial real estate, the debts you place on the asset is usually much higher than whatever the original equity was – by using this leverage, you can buy more assets with less money, which will multiply their assets and increase equity.

Hedge on Inflation

Real estate investments have been proven to show the highest inflation correlation when compared to other assets. Unlike other investments, with real estate, as inflation increases, the price of real estate will also rise.

Maximize Tax Benefits

Real estate owners and investors benefit from the U.S. Tax Code in a number of ways. Real estate owners usually have unlimited mortgage interest deductions and they’re also allowed a provision that gives investors the chance to defer taxable gains into the future.

Asset Value Appreciation

Inflation takes a significant toll on purchasing power, but as time goes on, you’ll find that your assets and property values increases. If a majority of your income is coming from your real estate investments, you’ll find that the property’s increase in value will correlate to an increase in your net income.

Feeling the Pride of Ownership

At the end of the day, you can’t put a price on the feeling of pride you get from successfully managing real estate. Although homeownership is not an attainable goal for most people, the thought of managing several housing units as a real estate investment can offer a similar sense of pride.