There are many investment options promising to make you rich and prepare you for retirement. So, why invest in real estate?

Take this common scenario: most people find themselves wedged in the payroll machinery of daily work, living from paycheck to paycheck, and still hope for a more secure future. They often are left wondering whether they will ever break free from financial stress to enjoy life as they really want it.

One of the days, while discussing future plans with friends, investing suddenly pops up. Everyone has heard tales of people whose money is spotted in the stock market, but there's something more interesting about real estate. Owning a property—something tangible and substantial—is what they develop an interest in.

Unfolding the world of real estate investing reveals quite a number of key advantages:

• Tangible Asset: You can see and feel real estate. A piece of property is tangible in that respect, as stocks are completely unpredictable.
• Consistent Income: Rentals allow you to have a consistent monthly check to use however you want. Imagine getting checks each month that complement your primary income-check, using that money to save for that dream vacation, pay off the debt, or just live a little better.
• Appreciation: Real estate properties tend to appreciate in value over time. Therefore, real estate investing offers the opportunity for your asset to rise in value, increasing your wealth to be utilized at a future date.
• Tax Benefits: Most real estate investors realize considerable tax benefits that increase the overall return on investment. Tax benefits can reduce your taxable income, thereby allowing you to retain more money in your pocket.
• Community Impact: Often, direct real estate investment involves the revitalization of neighborhoods. In reconditioning houses or apartments, you're directly investing in a neighborhood's and families' quality of life.

It is from these discussions and realizations that one will very well see that real estate investing isn't all about making money. It is about creating opportunities and making a better future. This is the way to attain financial freedom, allowing people to break free from paychecks' confinement to live their passions freely.

Chances are that at some point you needed a change of life. In such a situation, look no further than real estate as a possible investment outlet. It ends up being the best recipe for a better life change.

In this post, we talk about the most important ways in which real estate investments may improve your quality of life.

How investing in real estate can change your life?

The wait is over, let us just share why it is important. But let me ask you a question before we just jump on the reasons, how many of you have invested in real estate and have found them adding wealth for their retired life? We are excited to hear from you. Share with us your experience. How was it helpful investing in real estate?

Now let’s talk about the reasons

                                                                                                                                                                                      ➤ You'll gain more control.

One of the awesome things about investing in real estate, as opposed to other options, is that you get to have a lot more control over your investment strategy.

When it comes to stocks, a lot is out of your hands since the market and company actions play a huge role. But with real estate, you get to take the reins and really contribute to making your investment thrive. You'll get to decide if it's the right moment to sell a property or if you'd prefer to turn it into a rental.

When it comes to real estate investing, you’re always in control. Even though the real estate market can shift a bit, you still have way more control than with other kinds of investments out there.

➤ It'll provide you with greater stability.

One more awesome thing about investing in real estate is that it tends to give you more stability compared to other types of investments.

When the economy shifts, you might notice that stocks, mutual funds, and other similar investments can really fluctuate. Real estate is a way more stable investment, you know? You can relax a bit more knowing that the value of your property isn’t going to fluctuate dramatically overnight.

Sometimes prices might drop a bit, but those changes typically aren't as big as what you see with other kinds of investments.

Plus, even if your property's value dips, you can still rent it out and bring in some consistent cash flow while you wait for the value to rise again.

➤ You'll have some powerful assets!

Owning and investing in real estate gives you a strong asset that can really enhance your life in many ways.

Once you’ve paid off your first property, it’ll be a lot easier to secure additional loans if you ever need one down the road. Once you own a home, a car, or any other assets, it makes it a lot easier to buy more in the future. You can use your property as collateral.

This type of leverage can really assist you in building your wealth. If you’re diving into investing for the first time, snagging your first real estate asset can really help you take that next step. Once you get one property, it becomes a lot easier to pick up more real estate assets from that point on. 

➤ You Will Find Filing Your Taxes Easier

Owning real estate may actually make paying taxes a lot simpler, which seems backwards. Investing in real estate allows you to take advantage of more specific tax breaks and deductions than other types of investments.

Unlike with other assets and enterprises, you won't be subject to self-employment taxes and will pay less on capital gains. Furthermore, real estate investors had it much easier thanks to the tax cuts of 2018, despite the fact that they were contentious.

As a real estate investor, you may reduce your tax liability by taking advantage of deductions for items like mortgage interest, cash flow, operational expenditures, insurance, and property taxes.

➤ This will help you generate some passive income.

A lot of folks dream about earning passive income, where they can sit back and let the money roll in each month without having to put in the daily grind. Investing in real estate can definitely take some effort, but it’s totally possible to make some passive income from it.

Having a rental property means you can enjoy some passive income and watch that rental money roll in each month. You’ll be making money even while you’re catching some Z's. You might find yourself handling repairs and managing tenants on your own, but in some situations, you could hire a property manager to take care of those tasks for you.

If you're on the hunt for some extra cash each month without dropping the ball on your other responsibilities, real estate investing could be a solid option for you.

➤ It might just be the key to your retirement.

Investing in real estate could be a smart move for your retirement plans. Real estate properties are pretty solid assets and can also generate some extra income.

If you play your cards right, you could see a nice stream of regular income from your various rental investments. During your retirement, this can really come in handy and provide you with a lot of security.

Getting into real estate can open up more chances for you to dive into other investments. It can provide you with the cash flow needed to explore a variety of investments, letting you dive into other options like stocks and mutual funds too.

➤ You could end up being really wealthy!

For a lot of investors, buying a real estate property is just the beginning of their journey to financial success.

A lot of investors have created whole empires just by putting their money into real estate. A lot of millionaires have come from real estate investments, likely even more than from stocks, commodities, bonds, and mutual funds.

Real estate can be a fantastic option for a retirement plan, and it’s one of the few investments that really gives you the chance for upward mobility that comes with owning property.

If you’re diving into a fix and flip strategy or just hanging onto a property for a while before selling, there’s definitely a chance to make some good money in real estate. If you keep playing your cards right, you'll be able to move forward pretty quickly year after year.

So, what's the deal with investing in real estate?

What’s the deal with investing in real estate? At this point, you’re probably starting to see why real estate can be a fantastic investment. Getting into real estate can be a great way to grow your wealth and set up a brighter future for you and your family.

Think about all the great benefits mentioned if you're weighing the decision to dive into real estate investing.

Looking for some guidance to kick off your journey in real estate?  Reach out to OM Financials today to find out more about our one-of-a-kind real estate loan options or Book a call with us today!