Building Wealth With Real Estate - Austin Real Estate Agent

Building Wealth With Real Estate

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Building Wealth With Real Estate

For nearly a decade, many Americans have felt real estate is the best long-term investment. Single-family homes, condos, townhouses, multi-family homes, ADUs (accessory dwelling units) or vacant land are all options to consider if you decide to invest.

This is an image of a man and a woman holding a set ok keys on a keychain of a house with the word home on it.

 

 

 

 

 

Benefits of Investing in Real Estate

  1. Tax Incentives – You may be eligible for certain tax breaks and deductions.
  2. Extra Income – After monthly expenses are deducted from the rental payment, there may be additional income left
  3. Leverage Funds – Real Estate investments can be financed through mortgages and other financing options, allowing you to leverage your capital and amplify returns.
  4. Hedge Against Inflation – Real estate historically keeps pace with inflation.
  5. Equity and Appreciation – Real estate properties tend to appreciate in value over time, allowing investors to build equity and accumulate wealth.
  6. Portfolio Diversification – Adding real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. It is also not affected by fluctuations in the stock market.

As with any investment, thorough research, careful planning and professional guidance are crucial to maximize returns and minimize risks. Always consult your trusted tax professional or financial advisor.

3 Terms to Know

  1. Fair Market Value (FMV) – The price that a buyer would pay a willing seller for a home in an open market. The FMV is agreed upon by both parties who are knowledgeable about the property.
  2. Investment Value – The amount an investor is willing to pay to obtain an aset or investment. It is based on their subjective goals, criteria, and opinions about the asset.
  3. Return on Investment (ROI) – Measures the profit you have made (or could make if you were to sell) on an investment. It is calculated by comparing the amount you have invested in the property, including the initial purchase price plus any further costs, to it’s current value.

This is an image of a couple meeting with a woman, financial advisor. They are sitting at a table with a laptop and papers on the desk. The man is holding a cell phone.

 

 

 

 

 

I know the market can be confusing, but I am here to offer clear, concise information you can trust. Feel free to contact me and I will answer any questions you may have.

Sources – 1. keepingcurrentmagtters.com/2022/06/13/more-americans-choose-real-eastate-as-the-best-investment-than-ever-before 2. investopedia.com/articles/mortgages-real-estate/11/key-reasons-invest-real-estate.asp 3. bankrate.com/real-estate/fair-market-value/#calc 4. corporatefinanceinstitute.com/resources/valuation/market-value-vs-investment-value

 

 

 

 

 

 

 

 

 

 

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