The typical American household net worth surged 37% during the pandemic according to the Federal Reserve’s Survey of Consumer Finances. And on today’s show, we’re going to discuss a major reason why – the power of real estate.
On this episode of Investing in Real Estate, you’re going to learn why real estate is the number one way to build your net worth. I’m sharing how real estate measures up against other wealth building tools, plus the four main ways real estate can help you grow your net worth. Click play to learn more!
More About This Show
- Real estate naturally appreciates in value over time. Even during inflationary times, real estate gets a boost in value. The average appreciation rate on real estate is around 3%. So if you purchase a rental property valued at $400,000, every year you’re gaining around $12,000 in value. Appreciation is a great way to steadily increase your net worth, year after year.
- Real estate investments are the only asset type that allows you to increase your net worth with the help of the banks’ money. With the power of leverage, you can get four to five times your purchasing power. Once you come up with down payment funds, the bank will secure the rest. This allows you to add to your net worth, and that investment only grows over time.
- Tax deductions related to owning rental real estate allow you to keep more money in your pocket. One of the top benefits of investing in real estate is the tax implications. By taking advantage of deductions like depreciation, you can reduce your overall tax burden, keep more of your profits, and build your net worth.
- When you own rental real estate, you get a unique protection from inflation. History proves that in inflationary times, real estate is actually positively impacted by price hikes. While prices of lumber and land increase, so do property values. And when rental rates go up, investors can make a nice profit. There aren’t many asset types that can profit from inflation, but real estate is one of them.
I hope you can see that if your goal is to increase your net worth, real estate is the best route to take. If you’re interested in learning more about adding to your asset column with rental real estate, my team at Morris Invest would love to hear from you. We can help you map out a personalized strategy to build your net worth, help set up retirement accounts that can protect your funds from inflation and swings of the market, and so much more. The call is totally free, so there’s nothing to lose. You can schedule a free 30-minute call by visiting our website: morrisinvest.com
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
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