It is reported that in the U.S today 10% of the population holds 76% of the country’s wealth, and a major reason for that disparity is the transfer of wealth from generation to generation. In this blog we will look at how to build wealth through real estate and close the generational wealth gap.
Generational wealth is the inheritance or financial assistance from parents or other family members transferring wealth from one generation to the next. However, one vital aspect to building wealth is diversification in order to minimize risk.
Investing in real estate is one of the best ways to reliably amass wealth, both by appreciation in market value and in reliable monthly cash flow. In fact, wealth can be built faster by investing in real estate than almost any other asset due to some simple premises; there’s only so much land to build on and people always need a place to live or vacation, and businesses need commercial storefronts and warehouses. There will always be a need for real estate and real estate investors.
It is often assumed that real estate worth depends only on whether its value goes up or down, but what makes real estate appealing for investors seeking diversification is its many aspects such as rental income and the absence of day-to-day fluctuations like other investments like the stock market. However, in the long-term real estate does in fact historically appreciate. Although values may fall in the short-term, it isn’t common, and they tend to bounce back rapidly.
Real estate investment is a long-established method for hedging against inflation, diversifying an investment portfolio, and creating multi-generation wealth. Investing in real estate can also offer a number of important tax advantages. There are a number of tax benefits to owning real estate investments including income tax savings on rental properties through depreciation and certain tax deductions, such as mortgage interest, insurance, repairs, and association dues.
If you are interested in discovering new ways growing your capital, investing in real estate can be a terrific way to diversify your portfolio, generate additional revenue, and build equity.
1 Stop Lending is contracted with some of the lowest-priced lenders in the nation and can provide all loan types and expert guidance for your real estate investment financing, along with unsurpassed customer service.
If you are interested in learning more, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more.