Find out why real estate is considered a good investment.
The benefits of investing in real estate are numerous. With well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification—and it’s possible to leverage real estate to build wealth.
Thinking about investing in real estate? Here’s what you need to know about real estate benefits and why real estate is considered a good investment.
KEY TAKEAWAYS
Real estate investors make money through rental income, appreciation, and profits generated by business activities that depend on the property.
The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.
Real estate investment trusts (REITs) offer a way to invest in real estate without having to own, operate, or finance properties.
Cash Flow
Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made. A key benefit of real estate investing is its ability to generate cash flow. In many cases, cash flow only strengthens over time as you pay down your mortgage—and build up your equity.
Benefits
Real estate investors make money through rental income, any profits generated by property-dependent business activity, and appreciation. Real estate values tend to increase over time, and with a good investment, you can turn a profit when it’s time to sell. Rents also tend to rise over time, which can lead to higher cash flow.
