Investment options are plentiful, with choices ranging from mutual funds, stocks, exchange-traded funds, and real estate. Yet, the allure of steady cash flow, impressive tax advantages, long-term security, and the potential to generate wealth have made real estate investment a popular choice for many. In this article, Sunil Tulsiani, founder of the Private Investment Club (PIC), highlights 10 reasons why investing in real estate is a wise decision in 2023 and beyond.
Steady Cash Flow
In real estate investment, cash flow is the amount left after all expenses such as mortgage and operating costs are deducted. Well-chosen property investment can generate steady positive cash flow. As an investor, you can improve your cash flow by upgrading your properties, changing their usage (such as turning them into student housing or short-term rentals), or providing fully furnished apartments.
It’s a Safe Investment
Investments can often experience significant fluctuations and instability, leaving investors feeling uncertain about the future of their returns. However, real estate is considered a secure long-term investment option, as it provides more control for the investor to enhance the property and increase their return on investment through means such as improving the property or securing a more profitable tenant.
Take Advantage of Tax Deductions
In addition to consistent income streams, real estate investment offers numerous tax benefits that can result in significant savings. Although there are various costs associated with real estate investment, such as mortgage payments, property taxes, insurance premiums, depreciation deductions, and maintenance costs, these expenses can be utilized as tax deductions with the assistance of a qualified accountant.
Real Estate Increases in Value Over Time
Real estate has a proven track record of appreciating over time. Even during economic downturns, real estate survives and returns to normalcy. The more rent increases, the higher your income. And by making small renovations to the property, you can ultimately increase its value.
Real estate is considered a lower-risk investment compared to other classes of investment. It’s a great tool to have in your portfolio and is why more than 80% of self-made millionaires generate their wealth through real estate. Banks and money lenders also see real estate as a safer investment, making it easier to finance a property compared to other investments.
Take Advantage of the Power of Leverage
Unlike other investment options, real estate can be financed through debt. As long as you have a good credit record and a steady source of income, you can take advantage of real estate financing. There are many ways to finance real estate and many lenders only require a 20-30% down payment.
It’s a Flexible Investment
Real estate is a flexible investment with various investment strategies you can employ. Whether it’s a plot of land, a condo, a multifamily building, or a high-end apartment, there’s something for everyone. You can invest to generate cash flow, flip, or for appreciation, with various exit strategies available.
In real estate investment, you borrow money from the bank and then have your renters pay off the mortgage over time. This means someone else is building your equity for you over time.
Real estate has long been considered one of the best investments that hedge against inflation. As inflation increases, rental properties increase, which ultimately increases your income. Inflation also affects real estate debt, lowering the loan value.
Passed Down to Future Generations
Real estate investment is not just about building wealth for yourself, but also for future generations. It’s a tangible investment that can be passed down from generation to generation, making it a smart way to pass down wealth to loved ones.
In conclusion, real estate investment offers a multitude of benefits, but it also comes with its own risks. Sunil Tulsiani advises that it’s important to do your own due diligence and acquire knowledge to understand how the market works. Invest wisely and reap the benefits that real
About Sunil Tulsiani
Sunil Tulsiani, an honored personality of Canada is a former police detective of the Ontario Provincial Police (OPP) turned real estate investor. After 15 years in the force, he walked away because he found himself spending too much time at work and not enough time with his family. Sunil turned to real estate investing, buying and selling 77 properties in his first year alone. This left him known as “the wealthy cop,” and this beloved nickname has stuck around to this day.
Today, Sunil is a multi-millionaire investor who aims to help others attain financial freedom through his membership and mentorship programs. Members of the club include Jack Canfield of chicken soup for the soul, Robert G. Allen New York Times best-selling author, Brian Tracy, and Kevin from Shark Tank!
Sunil not only spearheads PIC but is an international speaker, best-selling author, business coach, mentor, public speaker and an expert real estate investor. He has shared stages with the likes of Tony Robbins, Robin Sharma, Robert Kiyosaki, Grant Cardone, and Les Brown amongst others. He has been featured on Forbes, USA Today, The Toronto Star, CNBC, Times of India, and Fox Business News and has been profiled on Breakfast Television (CP24). Sunil’s goal is to make 100 millionaires / multi-millionaires through his elite club and mentoring.