SimonStapleton.com

5 Reasons to Leverage Real Estate in Building Wealth

Estimated reading time: 3 mins

When looking for investment opportunities, real estate readily comes to mind. While many investors are considering lots of ideas, they seem to have kept the sleeping giant (real estate) by the side. Real estate is a viable medium to hitch a ride to riches. There are many reasons to support this claim. You can enjoy favorable taxes and excellent returns on investments. If you’re looking at real estate as leverage to build wealth, let’s walk you through the top five (5) reasons why real estate is a better investment.

 

  • There are better returns and fewer volatilities

 

Every entrepreneur should be ready for risks. However, if the investment must be profitable, risks should be on the low. Real estate is one of such investments that offer the minimal risk of loss. When placed side-by-side with the volatile stock market, real estate proves to be a literal “risk-free” investment. When the market dips, you have better chances than those trading on stocks. Also, when the market improves, the value of your property (or home) also toes the same line. Real estate is all about building equity; with fewer incidences of risks. Investors also get to control their investment better. The property at stake is a tangible asset and as such, can be channeled to different revenue approaches. For instance, the home can be leased or rented to generate numerous revenue streams.

 

  • The Value of Assets is on the Increase

 

In spite of the high value of assets, real estate is a yet-to-be-tapped investment. Real estate is better than other investments such as cars that can depreciate in value over time and stocks that can drop to zero in a matter of hours. Investors will always receive value in their homes and lands. What’s more? Ensuring the home is a great way to protect investments in real estate. In the event of unforeseen events, you can be sure that your asset is well-protected.

 

  • The value of Real Estate soars to the Sky

 

Holding onto an asset pays off if the market is good. From the stock market to real estate, the longer an asset is held by the investor, the more value it brings. There are exceptions because the real estate investment soars to the sky when other investments depreciate. History continues to prove that the values of homes continue to appreciate after major slips in the market. As investors in the real estate industry are enjoying a windfall, other states in the nation are also recording massive appreciations. This fact is confirmed by millions of dollars that some of my clients made in less than a year after flipping their homes.

 

  • Real Estate helps you spread risks

 

The downfall of empires starts when the concentration is on one source of income. If you have taken out time to consult a financial expert, you must have realized the need to diversify your portfolio. Having investments in other industries and adding real estate to the list is a great way to spread risks. Also, real estate is a “safe haven” among other portfolios as the risks are on the low. While investors consider it to be the next option for investment, researches have shown that investing only in real estate helped many amass wealth. So while you spread the tentacles of your investments, consider real estate as a safe tangible asset to mitigate risks in your portfolio.

 

  • Take Advantage of Tax Deductions

 

Real estate is a haven for investors that want to cut down on their taxes. Investing here comes with lots of tax benefits such as deductions on mortgage interest and depreciations. You also get to benefit from cash flow from properties, property taxes and reductions in operating costs and expenses. As the year draws to a close, investors will be making moves to cash in on deduced taxes. If you’ve not done so, this is the right time to invest in real estate.

Build Your Wealth with Real Estate

Investing in real estate comes with lots of benefits such as deduced tax, and a continuous stream of revenue. Also, it is risk-free and can turn out to be an investment that will provide years of happiness and cash flow to your pockets.

 

About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

Post your comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Affiliate Promotion

simonstapleton.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Amazon, the Amazon logo, AmazonSupply, and the AmazonSupply logo are trademarks of Amazon.com, Inc. or its affiliates.

Polls

When answering Employee surveys, do you always answer completely honestly?

View Results

Loading ... Loading ...
My latest book: ACE Your Performance Appraisal$4.99 on
How Am I Doing?

Did this discussion solve your problem?

Then please rate this post or leave a comment.