Real Estate Investing: WHY YOU SHOULD! (2023)

The 5 Reasons To Consider Investing in Real Estate:
1. Capital Appreciation
2. Rental Income
3. Tax Benefits
4. Leverage
5. Diversification

Real estate investing has several advantages, and one of the most significant is the potential for capital appreciation. This refers to the increase in the value of a property over time, and it can be driven by several factors such as supply and demand, economic growth, and development in the property's area. For example, if an area experiences strong population growth due to economic opportunity, demand for housing will increase, leading to rising property values. Investing in properties located in areas with a strong local economy, growing job market, and desirable amenities can result in more rapid appreciation of the property's value.

In addition to capital appreciation, rental income is another significant advantage of real estate investing. The income generated from renting out a property can be used to cover the mortgage payments and expenses associated with the property, with the money left over serving as the investor's profit. Rent income is a steady stream of cash flow paid to you based on the terms of the lease, and it looks different if you go the route of something short-term like Air B and B. Properties located in areas with high demand and limited supply can command higher rental rates without worrying about a lack of potential tenants.

Rental income can also provide protection against inflation, as rent naturally increases over time along with the value of real estate and other costs of living. Additionally, rental income has even outpaced overall inflation in the last two decades. However, it's essential to make sure that the property is providing positive cash flow, as rent payments need to be high enough to cover the mortgage, insurance, HOA fees, maintenance, repairs, and many other smaller expenses that'll eat into your bottom line. The average rental property earns an income ROI of 8 percent, but that's on average, and many properties lose money, so don't assume cash flow is automatic.

Real estate investing also offers significant tax benefits, such as depreciation, which allows investors to deduct a portion of the property's value from their taxable income each year, therefore reducing the investor's total tax liability. This is a significant advantage as it helps to save on taxes. The ability to deduct expenses associated with owning and managing the property is another tax benefit of real estate investing.
In summary, real estate investing offers several advantages, including the potential for capital appreciation, rental income, protection against inflation, and tax benefits.

However, it's essential to invest in properties located in areas with a strong local economy, growing job market, and desirable amenities and make sure the property is providing positive cash flow. With the right investments, real estate investing can be a profitable way to grow your wealth over time.

Disclaimer: This is NOT financial advice. This video contains my own opinions for the purposes of entertainment and education.

real estate investing 2023, real estate investing for beginners, real estate investing 101, real estate investing strategies, real estate investing course, rental properties, rental property investing, air bnb investing, how to make money with real estate, how to invest in real estate, real estate investing explained.