Building Wealth with Real Estate
For nearly a decade, many Americans have felt real estate is the best long-term investment.¹ Single-family homes, condos, townhouses, multi-family homes, ADUs (accessory dwelling units) as well as vacant land are all options to consider when deciding to invest.
Benefits of Investing in Real Estate
Tax Incentives
You may be eligible for certain tax breaks and deductions.
Extra Income
After your monthly expenses are deducted from the rental payment, there may be additional income left.
Leverage Funds
Real estate investments can be financed through mortgages and other financing options, allowing you to leverage your capital and amplify returns.
Hedge Against Inflation
Real estate historically keeps pace with inflation.
Equity and Appreciation
Real estate properties tend to appreciate in value over time, allowing investors to build equity and accumulate wealth.
Portfolio Diversification
Adding real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. It is also not affected by fluctuations in the stock market. ²
As with any investment, thorough research, careful planning in addition to professorial guidance are crucial to maximize returns and minimize risks. Always consult your trusted tax professional or financial advisor.
Three Terms to Know
Fair Market Value (FMV)
The price that a willing buyer would pay a willing seller for a home in an open market. Both parties who are knowledgeable about the property agree on the FMV. ³
Investment Value
The amount an investor is willing to pay to obtain an asset or investment. It is based on their subjective goals, criteria, and opinions about the asset. ⁴
Return on Investment
Measures the profit you have made (or could make if you were to sell) on an investment. Compare how much you’ve put into the property (the purchase price and any extra costs) with what it’s worth now and you have your ROI.
We know the market can be confusing, but we are here to offer clear, concise information you can trust. Feel free to contact us and we will answer any questions you may have about Building Wealth with Real Estate.
Building Wealth with Real Estate
