Why Real Estate?

Introduction

Real estate has been the go-to investment for generations because it provides a number of benefits that most other investments can't match. It’s not just about depreciation, appreciation, and tax sheltering anymore; today you can also leverage your real estate investments with debt financing. Here are some reasons why real estate is still a solid choice:

Depreciation, Appreciation, Tax Shelter, Leverage, Debt

Here are some of the reasons why real estate is a great investment.

• Real estate depreciation: You can deduct the cost of the asset over its useful life. For example, if you buy an apartment building for $1 million and sell it five years later for $1.5 million, you will be able to deduct $200,000 as an expense each year over that five-year period.

• Appreciation: As long as there's no recession (and we don’t believe in those anymore), your investment should appreciate in value, too—so you'll get capital gains when you sell it (or rent out space). Even if it doesn't appreciate significantly over time because prices have plateaued or even fallen slightly during a downturn, there's still a good chance that rents will go up with inflation every year—which means increased income from tenants paying higher monthly rent checks every month! Plus there's always room for improvement on any rental property even if nothing looks wrong with it at first glance... so don't worry about future maintenance costs since they're covered either way!

Understand why you want to invest in real estate before you start investing.

If you want to be successful in investing, it’s important to understand why you want to invest. The following questions will help you figure out your motivations:

• What is your goal? Do you want a short-term investment or long-term? If so, how long?

• What is your risk tolerance? Are there certain risks that are acceptable and others that aren’t?

• For example, some investors are comfortable with the risk of buying property at below market price but not willing to take on additional debt beyond the purchase price. Others might be willing to take on more debt if it means they could make more money in their investment property.

• What is your timeline for reaching this goal or meeting these financial goals? It can be helpful for some people just starting out with real estate investments by creating an actual timeline based on projected income streams from rental properties over time; other people may have set timelines based on when they expect their kids will go off to college or graduate school (or even sooner!).

Conclusion

These are all great reasons to invest in real estate, but only you can decide what’s right for you. Be sure to understand the risks of each option before making an investment!