Protection Against Runaway Inflation
Considered by many experts to be one of the surest and smartest investments available today, real estate investing is an ideal way of protecting and growing wealth. This is especially true considering that it offers excellent protection against runaway inflation. More people than ever before, as a result, are including residential or commercial real estate assets in their investment portfolio. Here are a few primary reasons why investing in income-producing real estate can protect and grow wealth year after year.
Buy More Assets Using Less Money
For example, this type of investment vehicle will provide for positive cash flow. Investing in real estate is a proven way of generating a regular income stream that is notably more robust than typical stock related dividend yields. Also keep in mind that when investing in commercial real estate it is often possible to buy more assets using less money. This is simply due to the fact that it is possible to place a greater amount of debt onto an asset that can be up to several multiples of the original equity.
Leveraged By Multiple Cash Flow Streams
In addition, increasing positive cash flow is possible by using positive leverage on any given real estate asset. This can be done by borrowing money at a lower cost to the borrower than what the property is capable of paying out. In essence, both residential and commercial real estate investing allows for low-cost debt to be leveraged by multiple cash flow streams. It is also an excellent hedge against inflation. Historically speaking, real estate investments as compared to other asset classes such as stocks and bonds provide the best inflation hedge available today.
As an added advantage, Anacortes real estate investments of just about any variety are known for maximizing tax benefits in a very substantial way. Today's existing US tax codes are designed in such a way that they greatly benefit real estate owners. For example, investors are able to leverage unlimited mortgage interest deductions as well as depreciation acceleration. This helps to protect the positive cash flow that is routinely generated by real estate investors. Finally, asset value appreciation helps to secure the purchasing power of real estate investors. When properties are effectively managed, the end result can be impressive returns and remarkable asset value appreciation over the short and long-term. Contact Nicole Haun today to learn more about profitable investments in real estate in Oak Harbor Washington.
Contact Nicole Haun today by visiting Realestateinanacortes.com and filling out our simple online contact form. We offer access to a wide range of Bow WA multiple listings as well as homes for sale in Mount Vernon Washington and many other surrounding communities.
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