What are the Top 7 Reasons why you should invest in Real Estate?
One of the most overlooked sources of building wealth is real estate. Most people do not realize that to invest in real estate increases their net worth and grow their capital gains gradually. Real estate is one of the safest and most untapped choices for investment. Many people consider purchasing real estate for their primary residence but not for investing. It is safer than playing the stock market or investing in start-up companies. If you are thinking of purchasing property as an investment, I have compiled a list of reasons why you should stop waiting and jump right in.
Security
When you purchase a property as an investment, you own a valuable asset. It’s something you can monetize. There is a comfort when you put your money into investing into property. You can gain revenue from the property by renting it out, or you can sell it and cash out. The longer you own the property, the more your investment will grow.
Inheritance
Real Estate as an investment is perfect for inheritance. This is a great way to create generational wealth. You can pass the property down to your heirs. By establishing trusts, you generate monthly income for your heirs. This creates tax benefits for your heirs and the property.
Leveraging Equity
Learn to use real estate as an investment tool and allow it to work as a bank. A property builds equity over several years. You can use the rental income to pay down the mortgage. Leverage the decrease in the mortgage by taking a loan out against the equity you have built and reinvest it. By doing this you utilize the equity of one home to purchase another, and add to your real estate portfolio creating additional wealth. This method is a prime example of how you can invest a little and reap a harvest. Wealth is generated slowly; however, there is not huge upfront investment required.
Multiple Avenues for Cash Flow
There are multiple ways to gain cash flow from properties. If you own land you can rent the land or you can build multiple units or homes on the land. If you own property with an existing house, you can rent the entire property out or rent out rooms to maximize monthly income. You can remodel, or “flip” the property and sell for at a higher value than you purchased the home for and make a quick profit.
Foreclosures
In recent years, there has been an influx of foreclosures. This has created an opportunity for affordable houses on the market and also allow buyers to gain investment properties below their actual value.
Passive Income
A Great way to make money as a hobby – you can start investing as a business entity or individual with your extra savings.
Appreciation Values
Yes, stocks and bonds do generate interest and gains, but, real estate is by far the most reliable and safest way to generate increases in assets. The appreciation value speaks for itself. According to the United States census, real estate appreciation values increased 80-300%—depending on location—from 1970 to 2000. This statistic alone is enough to motivate you to learn more on how you can increase your net worth through real estate.
Now is the time to jump and make the decision to invest in real estate. Start preparing yourself to build your wealth by increasing your real estate portfolio now. Consult a real estate or money coach that can help you strategize to achieve you real estate and investment goals.
I have been in the banking and financial industry for over 18 years. My experience has afforded me the opportunity to help clients make money, save money, and make wise investment decisions. I am a licensed mortgage loan officer and a certified life coach. I have successfully worked these principles myself. My $1000 investment into real estate helped me to generate over $1.4 million in assets.
This feature appeared in our 1st Issue of TheBeyondWoman Magazine
Written by Shamonia “Coach Mona” Wimberly
The Success Strategist
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