Many people think of stocks and bonds when considering investments. However, real estate is another effective tool for wealth building, offering many unique benefits. Here are some reasons to add real estate properties to your portfolio.

Why Investors Love Real Estate

1. Tax Benefits

State and federal governments offer incentives to real estate investors. For instance, income generated through rent is not subject to self-employment tax, helping you avoid more than 15% taxation.

Moreover, you get to write off expenses incurred to generate rental income, including depreciation, insurance, travel, maintenance and repairs, legal expenses, and property taxes. Finally, if you hold the asset for longer than a year, you’re entitled to lower capital gains taxes. 

2. Cash Flow

With the right property, rental income can generate positive cash flow from the outset.

Many other investments don’t produce an income until they’re sold, which is why real estate is popular for wealth building. Moreover, the cash flow of a rental property only improves the longer you own it, since rent prices tend to increase over time due to inflation.

3. Autonomy

As a landlord, you have complete control over how to run your business. For example, you can prioritize which maintenance tasks to approach first and decide when and for how long you work.

Unlike stock investments, real estate puts you in the driver's seat in terms of money management and long-term goals. You choose which properties to buy, who your tenants will be, and how much to charge for rent.

 

For long-term guidance on wealth building, contact Black Sky Group. Based in Raeford, NC, these professionals help individuals nationwide improve their financial positions through entrepreneurship, Forex trading, and residual income opportunities. They offer financial education and market advice, hosting a respected financial podcast. Learn more about them on their website, or call (910) 724-1061 to schedule a consultation.