REAL ESTATE CAN BUILD GREAT NET WORTH FOR YOU!

0

Real Estate is one the biggest tool to build up net worth for you. If you plan rightly while buying or selling real estate it can help to build your net worth beyond your imagination. You need to make it absolutely clear to you what is the purpose of buying a particular property. You need to understand the best use of that property whether it is single family detached house, a commercial property or duplex. Here are a few reasons to justify real estate is a great place to build net worth.

  1. It PRESERVES your wealth, because it is a long term investment.
  2. It can be a great source of STABLE INCOME after taking care of expenses and mortgage payment. 3 Real estate is SAFE INVESTMENT, it is not as volatile as stock market can be.
  3. Commercial rental properties can be great tool for TAX ADVANTAGE.
  4. Home owners have BETTER CONTROL over real estate investments than stocks and bonds.

Building your net worth through real estate investing is best done by owning rental property. Purchasing property for the long term is a fantastic way to build your net worth because you have multiple streams of wealth creation. The property may appreciate, the mortgage balance will decrease with each loan payment, and the rental income is extremely tax advantaged.

The only drawback of investing with the goal of growing your net worth is that you don’t obtain immediate cash for your efforts. It’s delayed gratification. You look good on paper but you may cash poor. The reality is that it is hard to have your cake and eat it too with net worth building. Legends like Warren Buffett drew a tiny salary for decades, lived very frugally and poured all his energies into growing his net worth. He is famous for saying that his favors an investment strategy of holding assets forever; buying and not ever selling. He’s one of the wealthiest people in the world right now.

Another hidden drawback on your path to building a huge net worth through real estate investing is that owning rental property can cost you a ton of money out of your pocket year after year if you are not careful. That’s why buying wisely and only choosing to be a landlord on deals that cashflow very well is so critical. The deal has to generate enough positive cashflow that if problems occur such as eviction, maintenance or natural disasters, you have the vault of emergency money to cover the problems. . Owning a rental property for 5 years and having no positive benefit to show for it is quite frustrating. I’ve learned this lesson the hard way. Therefore, you are better off buying less but buying better deals in order to build your net worth. It’s not how many properties you own in your portfolio, instead, it is how well the properties you do own are building your net worth.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here