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Real estate investors can take advantage of numerous tax breaks and you also benefit from decades of deductions that help lower your taxed income. Here are some more great reasons you should invest in real estate.
Build Equity and Wealth:
As you pay down a property mortgage, you build equity—an asset that's part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more.
Portfolio Diversification:
Another benefit of investing in real estate is its diversification potential. Real estate has a low—and in some cases negative—correlation with other major asset classes. This means the addition of real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk.
Cash Flow:
Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made. A key benefit of real estate investing is its ability to generate cash flow. In many cases, cash flow only strengthens over time as you pay down your mortgage—and build up your equity.*
For more information, contact Eugenia C. Foxworth at 212-368-4902 or eugenia@foxworthrealtyonline.com.
Eugenia C. Foxworth is the real estate agent exclusively representing the Uptown, New York market as a member of the Haute Residence Real Estate Network. View all of her listings here.
