Real estate investing is often thought of as a volatile and risky investment, but it can actually be quite stable! In fact, even in these unstable times, real estates are still a great investment to make! According to some research, real estate seems to be the preferred investment over other already-stable things like gold! Why is this the case? Well, we can assume that the fact that land is a limited resource, paired with a growing population, simply pushes demand for real estate up, making them an excellent investment to make!
That said, here are six benefits of real estate investing as a way to protect your money:
- Cash Flow
One of the main benefits of real estate investing is the cash flow it can provide. With proper management, an investor can receive positive cash flow from their properties, which can help to offset other expenses and can also pay off the property itself!
- Equity Growth
Another benefit of real estate investing is the equity growth that can occur. As the value of a property increases, so does the equity. As a result, this provides the investor with a nice return on their investment.
- Tax Advantages
There are several tax advantages that come with owning investment property, such as the ability to deduct expenses and depreciation. This can result in a lower tax bill and more money in the investor’s pocket which can then be used for other things, including investments!
- Hedging against Inflation
Another benefit of real estate investing is that it can be used as a hedge against inflation. As inflation increases, the value of property usually increases as well, providing the investor with protection against rising prices which would otherwise reduce the value of their cash.
- Stable Investment
Unlike stocks, which can be quite volatile, real estate is a much more stable investment. This stability can provide peace of mind to the investor, knowing that their investment is not as likely to lose value. In fact, what’s almost guaranteed is that the property is going to go up in value. Of course, there is always a risk to any investment, but compared to other investments, real estate is quite safe.
Real estate investing can also help to diversify an investment portfolio, which can reduce risk and provide greater returns. By including real estate in a portfolio, an investor can offset losses in other investments, such as stocks, with safer, more stable real estate investments.
These are just a few of the benefits that real estate investing can offer. If you are looking for a stable investment with several advantages, real estate investing may be right for you. But of course, always understand that there are pros and cons to any investment. It is important for you to understand these and even reach out to an investment advisor to help you make the smart decisions that not only protect your money now but grow it over the course of many years to come.
Evergreen Investments provides the solution to help individuals achieve financial independence through homeownership and investing. If you are looking for estate investment help, get in touch with us today!