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Today we're going to be talking about the stock market versus the real estate market. The stock market just crashed by 1,000 points recently, and fortunately it rebounded. Today I have five reasons why you should invest in real estate instead of the stock market.
1. Cash-flow: You have a
constant stream of cash when you invest in a property. This is the biggest
benefit to investing in real estate.
2. Tax advantages: Real
estate is unique in this aspect. You get a lot of tax benefits when you own
property.
3. Hedge against inflation: Inflation
makes it harder to purchase certain stocks, but real estate isn't affected by
inflation. Prices will go up and down, but they won't inflate.
4. Leverage: When you purchase a property, you have the ability to do so with leverage. It's possible to buy a $750K property for 20% down or less. Stocks require that you put down all the money up front.
5. Equity: If you're
borrowing money to complete a real estate transaction, you'll be required to
pay it back with interest, but each payment brings you closer to paying down
your principal. You gain wealth each month that you pay off your mortgage.
I know a young man that owns five properties in California and Las Vegas right now, and he plans on owning 20 properties by 2020. He estimates that this will generate him $20,000 per month in passive income. That's not too bad, is it?
Call me today if you'd like to start the journey. Real
estate is a wonderful investment!
