Build wealth by becoming a real estate investor. I just thought I would list a few of the advantages.
1. Income Stream: Unlike other investments, stocks & bonds, rental real estate generates a study income flow
2. Low Volatility: Less fluctuation impact in real estate than other investments. More true with commercial real estate, leases may run for 5 years or more.
3. Safety of a Tangible Asset: Real estate is a safer investment because it is a "brick-and-mortar" asset. Rental residential is probably more safe mainly due to the fact "people need a place to live.
4. Ability to Influence Performance: Real estate is a tangible asset, long term investors can increase the value by making improvements that make the property more attractive and can result in increasing rents, cash flow and value.
5. Inflation Protection: Real estate provides a natural hedge against inflation. With economic growth comes increases in rents. That leads to growing net income which further leads to an increase in value.
6. Leverage: With real estate an investor can borrow against the value of the property to purchase it. As value increases over time the investor makes money not only through his initial investment but by "other peoples money"!
7. Appreciation: Value of real estate tends to increase over the time owned. Usually the investor who buys and holds on to the property can almost always sell it for more than he paid for it.
8. Depreciation: The IRS allows for an annual tax deduction for depreciation. Residential real estate has a time period of 27.5 years. This deduction will allow the investor to reduce has annual income.
9. Tax Advantages: Depreciation is not the only tax advantage. The 1031 Exchange defers taxes on capital gains. Self-directed IRA's can own property and defer taxes until retirement or before-tax dollars in a self-directed IRA can be used to purchase property.
10. Market Conditions: As GDP grows, market expands, demand increases and rentals go up accordingly. As the market moves toward recession, demand reduces and so do prices.
These are a few of the advantages to being a real estate investor. If I can help answer any questions that you may have, please do not hesitate to contact me.