Investing in Real Estate, in general, has many potential benefits, among these are:
- Passive Income - a well performing asset produces a steady stream of passive income
- Appreciation - both forced appreciation (value add) and the natural appreciation of property values and market rents mean the asset is continuously gaining in value
- Tax Benefits* - depreciation, write-offs and 1031 exchanges represent a significant potential reduction to your tax burden
- Inflation Hedge - rising property values and rising rents make real estate a safe haven from inflation
- Leverage - control over an asset generally demands only 25% of its value in capital, the remaining 75% is leveraged by means of a loan
- Limited Liability* - you only risk what you invest