6 Reasons Why Real Estate Is the Smartest Investment

Dave Nimick Chicago Real Estate Podcast

There are many reasons to invest in real estate, but today I’ll share the top six.

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Here are the six reasons you should consider investing in real estate:

1. Leverage. Leverage is a wonderful gift that real estate can give you. It’s the ability to borrow other people’s money to build your own wealth. You can buy and control something you didn’t pay full price for in cash up front.

2. Tax benefits. Investing in real estate can reduce taxable income by depreciating assets over time and writing off deductions. Unlike most other investments, there are some tax protections from the increase in value (i.e., appreciation). You can also defer taxes by doing a 1031 exchange and selling one investment property in order to purchase another.

3. It’s a hedge against inflation. Many other investments, meanwhile, are often less stable.

4. Diversification. There are several worthwhile areas to consider investing in (stocks, bonds, metals, etc.), but make sure you don’t miss out on what’s available in real estate.

5. Flexibility. Real estate is one vehicle that can serve many purposes. The first is income. Depending on the investment and how much you put down, you may see immediate positive cash flow from it. The second is long-term appreciation. Over the course of time, real estate tends to increase in value. The third option is a forced equity plan, which accelerates what you’d pay down on your mortgage balance and create more equity in your home. You can then borrow against the equity you have if you want to purchase another property and start the cycle all over again.

Real estate is one vehicle that can serve many purposes.

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6. You have more control. The property itself is tangible—you can oversee it, inspect it, make improvements to it, and financially benefit from it. As we know, you need three things in order to survive: food, clothes, and shelter (in this case, real estate).

As with any investment, you’ll want to speak with an expert before making a decision. We at the Nimick Team take this duty seriously, and we treat our clients’ money as if it were our own.

If you have any questions about investing in real estate, please feel free to give us a call or send us an email. We’d love to help you.