According to Albert Dweck, Why You Should Invest in Real Estate



Since the beginning, having real estate was linked to status, wealth, and trustworthiness. Together with gold, it was considered the most secure method of protecting the wealth of one's family. When we entered the age of technology, various options for investing emerged. Options like bonds, stocks, fixed deposits, fixed deposits, and mutual funds that were digital or cryptocurrency offered investors a variety of ways to store their cash. However, of all these options, Real Estate still remains one of the most secure and lucrative options for a long-term and profitable investment.

Real estate is essential because everyone needs an area to live in, and investing in real estate addresses this issue and ensures the future. This article will discuss and explore Real Estate benefits and how it can be considered an investment worth it.

Appreciation of Value

Values of homes always increase in time. With a wise investment, one could make an impressive profit when it's time to sell. Rents can also increase as time passes, resulting in greater cash flow. It is evident that the longer you hold on to your property, the more money you'll make. The housing market always recovers from crises and bubbles that can cause the appreciation of homes to decline. Even in the most volatile times, price levels never drop, and the appreciation returns in the right direction. When investing in other ways like the stock market, the possibility of losing is everywhere. However, Albert Dweck says, real estate gives greater control over the investment. The property being a tangible asset, can be used to profit from multiple revenue streams and enjoy capital appreciation.

Cash Flow

The term "cash flow" refers to the revenue from a real estate investment after mortgage payments and operating expenses are paid. Real estate offers significant potential for cash flow. The steady stream of rental income is a great incentive for passive income that gives long-term financial security to investors. In many instances, cash flow will only increase when you pay off your mortgage and increase your equity. A solid real estate investment generally gives you more than 6% cash flow.

Tax Benefits

Tax deductions for Real Estate can offset income and lower overall tax burdens. There is no tax on self-employment in the case of rental revenue. In addition, the government provides tax credits for depreciation of property or insurance, maintenance, repair costs, legal fees, and even mortgage interest. The tax rate on long-term investments in real estate can be lower for real estate investors. 

Leverage

The most significant benefit of real estate investing is the capability to Leverage by investing only an amount of personal funds and taking the remaining funds to purchase a home. If you can come with a down payment out of your savings and then take out an unsecured loan for housing to pay the remainder of the property, you could buy prime real estate with as little as 15% of the purchase cost. This means that only a tiny portion of your personal money is put into the property. However, you'll still be an owner. This also means you won't invest all of your earnings throughout your lifetime into Real Estate and save some in case of emergency.

Tangible Asset

The property, being a tangible asset, is a great way to make money from various streams while also enjoying capital appreciation. The substantial value of the actual asset assures a lifetime of security because the property will have worth to be found in Real Estate, unlike other investments, like stocks with limited or no tangible value.

Real estate is simple to acquire, and finance offers tax benefits, enhances your lifestyle, and is free of insurmountable financial obstacles. Thus, Real Estate, even in the present, is one of the most profitable investments.

With a focus on specific regions in The Northeastern United States, Albert Dweck is a proponent of opportunities in the multifamily sector, particularly leasing apartments.