CASH FLOW
Tenants pay monthly rent which covers all expenses and provides profit to the owners.
STABILITY
Real estate is less volatile and has historically outperformed the S&P 500.
TAX BENEFITS
Depreciation is a free tax write-off that allows you to keep more profits in your pocket.
AMORTIZATION
Tenants pay down the debt which increases your equity, creating long-term wealth.
Why Real Estate Investment?
LEVERAGE
You can leverage real estate, allowing for the purchase of $100M with only $25M.
APPRECIATION
Real estate appreciates in value.
Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.
Both real estate funds and real estate investment trusts (REITs) are used when diversifying a long-term investment portfolio. A real estate fund is a type of mutual fund that primarily focuses on investing in securities offered by public real estate companies.
Property investment is big business, and, if done properly, can quickly become highly lucrative. It involves the purchase of a property, typically one that is still being built (off-plan property), with a view to enhancing it and either selling it on or leasing it out in order to gain a return.