5 Reasons To Invest In Real Estate Now

You may ask - what's so great about real estate investments? And why is everyone talking about it? Don't worry, and you haven't gone mad, it's not just you who has been seeing it all over the social media, real estate is taking over the world.

The real estate industry is one of the most stable and profitable businesses out there, and it's not shocking how extensive it has been spreading past couple years and why is everyone willing to join the bandwagon. There are numerous reasons for its popularity today, but to make things easier for you, let's discuss a few main aspects of real estate that attracts investors the most.

It can generate an insane amount of profits.

How can I not begin with the reason we are investing our capital at all? It's a known fact that 90% of today's millionaires, got where they are now by making investments in real estate. This proves my point - the cash-flow that you could generate with real estate would be able to build your wealth in no time.

As of May 2020, the average, income of a real estate investor in the United States is almost $124,000 a year, which is more than $10K a month! And that's a pure profit. You don't have to be a math genius to realize that that's a lot of money, that could easily attract any of us.

Investors enjoy tax deductions.

Real estate investors are getting the tax benefits that other investors can't even dream of. For example, interest paid on mortgage, property taxes, insurance, etc.

"Real estate has incredible tax benefits. In certain situations, you don't have to pay taxes on your gains from investment properties. You can also get a $250,000 tax break as an individual and $500,000 as a married couple." - Holly Parker.

Investors can earn a passive income.

One of the greatest things about real estate is the possibility of generating passive income since not everyone is willing to take the responsibilities of the landlord, especially when there are so much time and money to spend on better things in life.

Moreover, more than 80% of multifamily households are being purchased trough apartment syndications, which are one of the most commonly used ways of generating passive income and where the apartments are taken care of by the owners of the deal, or merely general partners.

However, although general partners do the most of the work, they get as small of the share as either 20 or 30%, while the rest (80-70%) goes to their passive investors.

Real estate allows you to diversify your investments.

Investment diversification is the central aspect of both - safety and growing wealth through real estate.

By diversifying your investments into the different markets, you are saving yourself from potential losses if any of the markets are going through challenging times, and additionally pooling more money from various streams of income.

Real estate is a long term thing.

As Robert Martinez said - "Supply follows demand, and demand is continuing to rise. Populations rarely decrease, which is why the need for housing increases year over year."

You can't disagree with his statement, no matter how much the world changes and how advanced our lives will get, we will always need the houses to live in or the places to work and study at. And that's precisely what makes the real estate world undefeatable.