Why real estate over, or in conjunction with, your other investment options? While it is best to have a diversified portfolio in your investment portfolio, I want to draw your attention to real estate as a legitimate resource within your portfolio. Research and experience has shown that no other investment has had as consistent and powerful effect on the average person’s net worth as real estate ownership!
First, It’s Accessible – Anyone can buy it
It is easy to understand, easy to find and easy to finance. There are real estate financing options for every type of property and almost every type of buyer, there are no major financial barriers to entry.
Second, It’s Appreciable – It increases in value over time
Due to general inflation and the influence of supply and demand as the population increases, so does the demand for housing.
Third, It’s Leveragable – Buy on margin & borrow against equity
Real estate is leverage … practically no one pays all cash for a home or real estate investment. Almost everyone finances it through a mortgage. Investors get the benefit of the appreciation of the full value of the property while having only to invest a relatively small portion (or down payment) of the purchase price.
Fourth, It’s Rentable – Cash Flow!, Cash Flow!, Cash Flow!
Fifth, It’s Improvable with Sweat Equity
Real estate is improvable. You can improve the value of any property with some tools and some elbow grease, either your own or someone else’s. The right improvements can significantly increase the value and your equity in the property.
Sixth, It’s Deductable, Depreciable, and Deferrable
Real estate is deductible, depreciable, and deferrable. The government wants you own real estate and gives you many great tax benefits to encourage real estate investments.
Seventh, It’s Stable – Slow to rise & slow to fall
Real estate is stable. Unlike stocks, where there is not much you can do to affect its price, real estate is slow to rise and fall, it doesn’t surprise you and it doesn’t shock you.
Finally, It’s Livable – Shelter in more ways then one
Finally, real estate is livable. It is the only investment vehicle that could put a roof over your head while at the same time being a great place for you to start investing. You can buy it, fix it up, rent it out and buy again.
So for all these reasons, I hope that you can see how real estate is a very lucrative and powerful vehicle for investing.