March 7, 2022

On today’s episode of the LearnLikeaCPA podcast, we talked about why real estate is the GREATEST asset class to invest in - here’s why!

1. Real estate is an imperfect market - meaning you can get a deal (unlike the stock market). This means you can capture equity at the buy.
2. CASH FLOW!!! Cash flow = freedom.
3. As you hold onto a property, it’ll go up in value (typically around 3% per year).
4. When you invest in stocks, you’re only getting returns on the money you put in. By leveraging real estate, you might only have to put in $50,000, while the property’s value might be $250,000. And while you only put down 20%, you’re reaping the returns on that whole $250,000.
5. As you hold onto a property, your tenants/guests are effectively paying down the principle for you through their rent payments.
6. Real estate is an inflation hedge. If you borrow at 3% interest, and inflation is running at 7%, you’re capturing that 4% difference.
7. TAX BENEFITS!!! There are too many benefits to even begin to list them here - but we talk about several of them in today’s episode.

If you want to learn more about any of these, be sure to check out today’s episode!