Reasons 9 and 10 on Why the Wealthy Invest in Real Estate!

[Jorge Abreu]

💥Today we conclude our series of the Top 10 Reasons Why the Wealthy Invest in Real Estate!

👀Here are reasons 9 and 10

👉9) Principal Pay Down Isn’t it great to have other people pay down your debt? Imagine several hundred people doing that. That’s what happens in large multifamily apartment and self-storage deals. Rental income pays down the debt and builds equity in the property. Through the life cycle of the syndication, rental income from the property pays all debt service. Upon sale of the property principal reductions will be returned to investors.

👉10) Great Inflation Hedge As inflation levels began to ramp up and the purchasing power of each unit of currency begins to take a hit, investors may be wondering how they can avoid this monetary backlash and avoid losing value on their investments to inflation. One way to do so is through investing in hard assets such as apartment buildings. Investing and building wealth through apartment buildings is a great way to hedge against inflation because rents, which is the source of an apartment investor’s gross income in the investment, rise along with inflation. Real estate in general is always a great investment, but the benefits of doing so are greatly augmented during times of rising inflation. Because of the limited amount of land, in certain markets, and rising population growth, demand in the real estate apartment sector is high. This limited supply and high demand means that increased property values offset any deterioration in wealth caused by a rise in inflation.

Talk to you all next year! Next topic, What is Syndication? Who is Involved? and What is Their Role?

✨Happy New Year!!✨