Real estate is one of the oldest investment strategies known to man, and it’s still one of the best ways to earn a consistent return on your investment. Real estate is known to provide better returns than the stock market and doesn’t feature as much volatility. Steven Taylor Taylor Equities is a landlord and community leader who seeks to educate those in his circle about the benefits of investing in real estate. Here are the main reasons why landlords would suggest that everyone with the means should invest in real estate.
Earn Passive Income
One of the greatest benefits of owning real estate is earning passive income. Owning a property means you can rent it to tenants and use the monthly payments to supplement your own income or finance other business endeavors. Passive income doesn’t mean that you don’t do any work. It means that you put in work on the front end to earn a steady stream of revenue later on without having to work towards the money directly. Being a landlord takes hard work, so don’t think that investing in real estate is a get rich quick scheme. But it is one of the most reliable ways to earn reliable monthly income while focusing on other jobs or projects.
Protect Your Wealth
Real estate is a great way to protect your wealth if you’ve accumulated a considerable amount of savings. Although it’s always wise to have a rainy-day fund if in case you need it. At a certain point, you’re losing money by keeping liquid funds in a savings account. Even the highest interest-bearing savings accounts offer less than 2% interest, which means your savings will diminish in value over time due to inflation. The actual dollar amount won’t change, but the buying power of the money will. If you make smart investments, real estate will appreciate in value at a rate greater than inflation. This allows you to put your money to work and earn a better return than if you’d left it sitting in a bank account collecting dust.
Another great benefit of real estate is tax deductions. There are many expenses related to the maintenance of your property that can be deducted from your taxes, including mortgage interest, operating expenses, insurance, property taxes, and depreciation. You should consult a tax professional who understands the laws to learn exactly which deductions apply to your investment. But owning real estate provides numerous incentives to those who know how to utilize it properly.
These are just a few of the many reasons why real estate is a smart investment. Steven Taylor Talyor Equities recommends that anyone looking for a smart way to invest their cash should consider purchasing real estate.