3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth 📈💰

Whether you have recently graduated from college or are getting close to retirement, it's likely that you have given some thought as to how you can grow your net worth. I mean, who hasn’t? 🤷‍♀️

You might have invested in stocks, picked up a few bonds or have a 401(k) plan set up, but have you considered buying real estate as part of your portfolio? Let’s have a look at three reasons why real estate investing is one of the most effective ways to grow your overall net worth!

Reason #1: It Generates Passive Income 💰

One of the best reasons to hold real estate as part of your investment portfolio is that it can generate passive income in the form of rent. Whether you buy a single-family home or an apartment block, you can almost certainly find interested tenants who will live there. 

Part of the rent you receive each month will cover the costs of owning and operating the property. The rest of it is income which will continue to build over time. Cash flow! 

Reason #2: It Increases In Value Over Time 📈⏰

Another great reason to invest in real estate is that in most cases, it appreciates in value over time. If you are maintaining the property and investing in its upkeep, you will have a decent shot at it being worth more in the coming years, should you decide to sell. 

Reason #3: You Can Leverage Equity To Buy More Properties 🏠🏠🏠

Finally, the third reason that real estate is the best way to build your worth is your ability to use it as leverage to buy more real estate properties. 

For example, say you decide to purchase a house valued at $100,000 as an investment property. Once the mortgage on that home is paid off, you have an asset valued at $100,000 that you can then borrow against. So you can go out and acquire another $100,000 home without having to sell the first. As you can see, this can scale quite nicely over time. The more your property appreciates in value, the higher leverage you get from it!

Interested in learning more about Real Estate Investing? I’ll be more than happy to guide you into finding the best investment property to help you reach your financial goals. 📞 Book a clarity call with me today!