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Whaddup friends! I'm pumped for today's topic. I have been doing some serious reading and research as we are in some crazy ass economic times and my hubby and I are looking at ways to come out of it strong. So, today, we delve into a topic that has stood the test of time, consistently outshining its counterparts: why I choose to invest in real estate over the stock market. Buckle up, my friends, as we as we unravel the undeniable power and rewards that come with investing in this enduring asset class.
Rent's on the Rise since World War II
Can you hear it? Ah, the sweet sound of cash flow. Real estate investments offer an enchanting siren song that the stock market can seldom match. Since World War II, rents have been marching steadily skyward, like an army of dollar bills on a mission to conquer inflation. As a savvy investor, this consistent upward trajectory is music to my ears and a dance of joy for my portfolio.
Capital PreservationBuilt to Last, Built to Profit:
Say it louder for the people in the back! In a world of financial uncertainties, one must seek refuge in a fortress of capital preservation. Real estate has proved time and again to be a formidable shield against the tempests of economic downturns. While stock markets can resemble roller coasters on steroids, real estate provides a steady anchor for your hard-earned wealth. After all, land is not going out of fashion anytime soon, and roofs over our heads will always be in demand. It's like investing in the eternal classic little black dress, but with more lucrative returns.
Tangibility: Enjoy Your Assets Without the Panic:
Have you ever hugged a stock certificate? No? Obviously, cause its paper and mostly digital now. One of the beautiful perks of real estate investing is the tangible nature of your assets. You can walk, touch, kiss it and even give your properties a name . #yeoldesailor . With each investment, you're not just accumulating numbers on a screen; you're acquiring a real, solid piece of the world. This physical connection brings a sense of security and control, sans the panic-inducing market volatility. It is R E A L Estate.
The Power of Creativity: Transform Your Investments into Masterpieces:
How fun is it to pick out flooring, paint colours, updating the front of the house? While the stock market may feel like a rigid Rubik's Cube, real estate offers a limitless canvas for your financial artistry. From finding undervalued properties to renovating and reselling, or even exploring the world of rental income either long term or Airbnb, the possibilities are endless. With real estate, you don't just invest; you shape and mold your investments into profit-generating masterpieces.
Diversification: Don't Put All Your Eggs in One Basket:
If there's one thing we've learned from the tale of Humpty Dumpty, it's that diversification matters. While the stock market is undeniably a valuable piece of the investment puzzle, relying solely on it can be as risky as a tightrope walk without a safety net. #donttrythisathome Real estate offers a beautiful way to diversify your investment portfolio, adding stability and a touch of flair. By spreading your resources across different asset classes like, multi family, single family homes, short term rentals, you minimize risk and increase your chances of achieving financial abundance.
Tax Advantages: Oh the Sweet Sweet Symphony of Real Estate's Favourable Treatment
When it comes to tax advantages, real estate takes centre stage, while stocks struggle to find their cue. Owning real estate provides a symphony, I'll say it again, a SYMPHONY of tax benefits that can harmonize with your financial goals, offering an edge that the stock market simply can't match. THIS is how the rich get rich. #payattention
Depreciation: A Melody of Paper Losses:
Real estate investors have the privilege of dancing to the tune of depreciation. The tax code allows you to deduct the depreciated value of your property over time, even if the actual value appreciates. This symphony of paper losses allows you to offset rental income, reducing your taxable income and keeping more money in your pocket. In contrast, stocks offer no similar tax deductions for their appreciation, leaving you without a melodic tax advantage.
Mortgage Interest Deductions: A Harmonious Refrain:
With real estate investments, mortgage interest becomes a sweet melody of tax deductions. The interest you pay on your mortgage can be deducted from your taxable income, providing significant savings. This favourable treatment allows you to reduce your tax burden while simultaneously building equity in your property. In the realm of stocks, however, no such resounding melody of tax deductions accompanies your investment journey.
Defer Capital Gains:
This elegant maneuver allows you to defer capital gains taxes by reinvesting the proceeds from the sale of one property into a like-kind property. The beauty of this serenade lies in the fact that you can continually defer taxes, leveraging the power of compounding to maximize your wealth. In the world of stocks, there are no comparable tax deferral options, leaving you without the sweet symphony of a 1031 exchange.
Property Tax Deductions: A Note of Relief:
Owning real estate provides advantage of property tax deductions. The property taxes you pay on your real estate investments can be deducted from your taxable income, further reducing your overall tax liability. This harmonious note of relief allows you to keep more of your hard-earned money while maintaining the value and appreciation of your properties. In the realm of stocks, NO such tax deductions are available, leaving you without the harmonious melody of property tax relief.
And there you have it, my fellow investors! Real estate, the tried-and-true champion of wealth creation, stands tall with a multitude of advantages that make it an irresistible choice for any investor. From the soaring rents since World War II to the allure of capital preservation and the freedom of creative expression, real estate captures the essence of financial success in a way that no other investment can.
So, as you march forward on your path to financial triumph, remember to choose investments that resonate with your goals, your personality, and your desire for a touch of adventure. With real estate, you can build a brighter future.
Not sure how to get started or where to invest? Let's jump on a quick call and see if how and if we can get you started. No harm in chatting.
https://calendly.com/easterbrookestates/mastermind
Until next time, my friends, let the allure of real estate guide your investment decisions, and may your pockets overflow with riches!
Happy investing,
Sara
XO
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