Investment Real Estate generates income for intended investment purposes and it is common for investors to own multiple properties, rather than one which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation.
Common examples of investment properties are apartment buildings and rental houses, in which the owners do not live in the residential units, but use them to generate ongoing rental income from tenants. Those who invest in real estate also expect to generate capital gains as property values increase over time.
Here are a few points why Investing in real estate is an excellent choice for protecting and growing your wealth:
- Positive cash flow.
- Using leverage to multiply asset value.
- Low-cost debt leveraged to multiply cash flow.
- Hedge on inflation.
- Capitalize on the physical assets.
- Maximizing tax benefits.