investing

Building Wealth Through Real Estate

For individuals with a net worth over $100 million, real estate typically accounts for roughly 24% of their total asset allocation. There are many reasons why real estate is one of the primary vehicles. Below are a few of the reasons behind this strategy.

  1. Wealth Preservation – Real Estate is one of the safest investments. Stocks are risky as you can loses everything very quickly. Real estate typically has a very high floor and appreciation over time makes for a very solid investment. It helps protect investors against inflation.
  2. Tax Benefits – there are a number of tax benefits from owning investment properties including deduction of interest payments and repair/maintenance costs. Also, investors are allowed a certain amount of depreciation that can help reduce their overall tax bill.
  3. Passive Income – Real estate can be a great source of passive income. By hiring a property manager to manage the day to day operations, a landlord minimizes the involvement required for this revenue stream.
  4. Diversification – Most wealthy people want to diversify their portfolio. This strategy helps them to manage their risk and not put all their eggs in one basket.
  5. Legacy Wealth Planning – this is one of my favorite reasons for investing in real estate! We build wealth not just for ourselves, but to leave a legacy to our children and beyond. With affordability becoming an increasing factor of home ownership, parents can lock in today’s prices and purchase legacy homes that can eventually be passed to the next generation.
  6. Lifestyle Preferences – Investments don’t have to be all about money. They can also fund the lifestyle of those wishing to enjoy their wealth and savings. A second home offers privacy, relaxation and getaways for family and friends.
pergola, view, heaven, relax, outdoor, vacation, home, patio, deck, relaxation, scenery, luxury, pergola, pergola, pergola, pergola, pergola, patio, patio, deck, deck

There are a lot of different reasons for building wealth. At the center, the reason could be to fund the life that you desire to live. For some of us it may be to go on that dream vacation or to set our kids up for their future. It also could be a mission of radical generosity to fund non-profits and fulfill the purpose that God has for you.

 

Building wealth doesn’t happen by accident. It requires the right motivation, vision, and strategy. Purchasing an investment home may not be in the cards for this upcoming year, but it does start as a conversation and a change in thinking about our way of life.

 

If you are interested in investing, send me a message and we can set up a strategy session to begin that conversation!  

 

Send a message