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Why I Love Real Estate Investments
Wealth inspiration part 14.
Wisdom can often come in small packages, and wisdom about building wealth is no different.
Today’s quote is from Mark Twain, the famous author and humorist:
“Buy land. They’re not making it anymore.”
Although it’s meant to be funny, like most great jokes it has an element of truth.
Real estate is often referred to as a “real” asset because it is something that you can touch.
I’m not talking about REITs or other ways to invest in real estate, which often follow the stock market trends. I’m talking about physical real estate like a rental house in your town.
There are many things to like about investing in real estate. It is sometimes referred to as an IDEAL investment (as outlined in “Retire Early with Real Estate” by Chad Carson) because it provides:
- Income - you get cash flow when your rent is more than your expenses
- Depreciation - you get tax advantages that reduce your taxable income
- Equity - you build up equity as you own it and make payments
- Appreciation - if chosen well, it will go up in value over time (not making any more land, right?)
