Three Reasons to Invest in Real Estate

 Leverage—In no other asset class can you borrow money to purchase the asset. You can’t borrow $100k from the bank to buy $125 worth of stocks. But you can borrow $100k to purchase a $125k house.

 Appreciation/hedge against inflation—real estate generally increases in value. It has peaks and valleys, but generally trends upwards, which can be a hedge against inflation. With stocks, all it takes is one poor decision from a CEO or board of directors to have direct implications to your retirement. Real estate is impacted by several economic factors, but YOU get to choose how you react to those factors—not some rich CEO on a beach somewhere.

 Tax advantages--*we are NOT CPAs and this is not tax advice* Real estate is full of potential tax advantages. Depending on your investment vehicle (rentals, flips, notes, etc), it can be considered passive income. You also have things like mortgage interest, depreciation, capital expenditures, and other costs of doing business that could potentially serve to help lower your tax bill.

Investing in real estate can start with your own home, first. It doesn’t have to be a giant multimillion apartment deal. Ask us about house hacking, or how to buy your first home with the plan of making it a rental in the future. There are SO many options!