Real estate investing, when done right, is a stable way to increase wealth over a period of time. Among the many benefits of real estate investing is that it can provide cash flow for retirement. This means it can help supplement your retirement years with income from your rental properties.
Real Estate investments are I.D.E.A.L (Income, Depreciation, Equity, Appreciation, and Leverage) type of investments.
Real Estate create stream of Income which is Passive income. Passive income as we all know eliminates debt by increasing the passive income. Passive incomes have tax advantages as well.
In Real Estate is this an awesome tool to take Tax deduction by depreciating the assets that you buy. Eventually when you sell you do have to pay taxes or use 1031 exchange to avoid taxes.
After making Mortgage payment the unrealized gains will increase as every month you are paying towards Principle creating additional equity. The mortgage payments are paid by the tenants each and every month.
If you buy in the region where there is population growth, the rents will go up due inflationary environment thus creating higher rents which translates into higher NOI and appreciation of an asset itself.
Unlike any other financial instruments, in REAL ESTATE, you can afford 5 times the down payment that you have. You can put 20 - 25% towards the purchase of the property and rest is either financed by the bank or government. The Mortgage interest still can be leverage to tax benefits.