Thursday, March 27, 2014

Wealthy People Own Real Estate

I was going to write about the many reasons I believe everyone should own real estate and then I came across this article by Hasani Pettirod. I'll save myself a few hours and just share what he wrote. -Natasha

The eleventh habit of wealthy people is that they own real estate. For wealthy people who have found their path to financial independence, it can be summed up in two words: Investment property. FYI- Owning a home is an investment in property. 

Theodore Roosevelt said, “Real estate is the basis for all wealth.” In fact, all wealth since the beginning of time has been founded in real estate. Over a third of the world's wealth is tied up in real estate. Fortune Magazine states, 97 out of 100 self-made millionaires made their fortune through Real Estate Investing. 

Wealthy people own real estate because it is an ideal investment.  Real estate is ideal because it provides: 1) passive income/cash flow, 2) appreciation, 3) tax advantages, and 4) leverage. Real estate is the only investment where you can have all of these working on your behalf within a given investment. It is these very attributes of real estate that cause you to become wealthy as a real estate investor because all the right components are present.

1. Real Estate ownership can provide a foundation for positive monthly cash flow and permanent passive income. The moment your rents exceed your monthly expenses you have cash flow. There is no limit on the amount of years that you can collect rents on any given property.

2. Over time property values rise. With our expanding population we know that demand for property will increase, and demand drives appreciation.

3. There are huge tax savings associated with real estate (deductible interest, expenses, etc.). The tax laws in our country were written by wealthy land owners. Therefore, that is whom they benefit. As an investor you own a property, the tenants pay the mortgage, you build equity and potential long term passive income and get all the tax benefits.

4. Leverage is the effective use of borrowed money to finance an investment. By utilizing the bank’s money you can leverage your resources, however limited they may be.

Real estate investing has been the foundation for many of the wealthy people around the world. Even if they made their fortune elsewhere, they definitely protected it in their property portfolios! Real estate is an asset and wealthy people own assets that produce income. It’s one of the easiest ways to make money. Jock Barker says "Tell me where else besides real estate where you can buy an investment for $10,000 down and renters pay off the rest of the investment for you. Where else can you make a 60 percent return on a $10,000 down payment in one year and have it be tax deferred. Isn’t that wild?"

In fact, real estate has outperformed the stock market for several years and it looks as if there is no end in sight. Money Magazine’s Martine Costello said, “You learned your lesson with stocks: Don't assume any investment can make you rich over night. But with smart real estate investing, you can earn a profit of 50 to 100 percent.”
As you can see, real estate is a lucrative investment to get involved in whether it be the acquisition of property or ownership through a real estate investment trust. Wealthy people have made millions in real estate for many years. Now it’s your turn. Do what wealthy people do and own real estate!


If you are interested in BUYING a home or investment property, contact me at (404) 857-2508!

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Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners and the Lead Home Stager with Heart of Decor in Georgia (virtual services available). She prides herself in being a guide to her clients and finds fulfillment in helping them achieve their goals.

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