The perfect investment is real estate. You probably remember reading in history books about the 26th president of the United States, Theodore Roosevelt, when he said “Real estate is the basis for all wealth.” Reading this as a child may have been a subliminal message that surfaces as you get older and wiser. How true this quote appears to be! It is estimated that at least 1/3 of all the worlds’ wealth is in real estate. Thus, the perfect investment is real estate.
Fortune magazine has stated that all wealth from the beginning of time was actually acquired in whole or in part through the investing of real estate. 97 out of 100 millionaires did so with real estate.
One thing that all wealthy people have in common is that they own assets that produce income. It is no wonder why theses wealthy people love real estate because:
- Real estate is a tangible asset that produces income.
- Real estate is a tangible asset that produces deductions.
- Real estate is a tangible asset that produces equity.
- Real estate is a tangible asset that produces appreciation.
- Real estate is a tangible asset that produces leverage.
As you can see, real estate is the perfect investment as it generates all 5 of the wealth building principals. Income, deductions, equity, appreciation and leverage. The income comes to you every month through positive cash flow. Tax deductions lower your tax liability each year you own a property saving you paid out tax dollars. Equity build up is a hidden benefit where your tenants essentially are paying down the principal balance of your loan. Appreciation is another hidden benefit happening month in and month out. When you sell the property this equity buildup and appreciation will result in a massive reward for you to now realize. Finally when you purchase this real estate investment with finance money the amount financed typically 80 percent is leveraged income. Using other peoples money to make money for you, is a beautiful thing.
Not only does real estate generate the perfect investment for those who seek wealth, it also offers a product that virtually every human being uses every day, a place to live. There is no other single item in the world today that I can think of (besides maybe water) that every living person utilizes on a daily basis, than a place to live. With a tangible asset that has all 5 wealth building principals real estate is and will always be the foundation of wealth for those who seek wealth.
Real estate is a safe and sustainable investment. When invested properly, real estate is probably the safest investment ever as the demand for real estate grows by the second. Want proof? Look at our growing population. In the U.S population grows like this:
- One birth every 8 seconds
- One death every 12 seconds
- One international migrant (net) every 44 seconds
- Net gain of one person every 13 seconds
See for yourself by visiting the US Census Bureaus’ Population Clock, it is quite intriguing.
With population growing by one new person every 13 seconds, that is 4.6 people per minute, 276 people per hour, 6,624 people per day and a whopping 2,417,760 per year. Yes, that number is almost 2.5 million new people per year needing this highly sought after place to live. If you were not convinced before, this statistic alone should get you wanting to be more purposeful on investing in the most highly sought after investment in the world today.
Real estate is the perfect investment!