Why Real Estate Is The Best Asset Class For Long Term Wealth by jhornungpwa


More Info
									 Why Real Estate Is The
Best Asset Class For Long
      Term Wealth

          By: Curt Cloyd – Director
       Personal Wealth Academy, LLC
Why Real Estate Is The Best Asset Class For Long Term Wealth
                                        By: Curt Cloyd – Director
                                     Personal Wealth Academy, LLC

When it comes to building long term wealth, there's only one thing that matters - Your assets. The more
assets you own and the higher their value, the more financially free you are. Assets can be any material
good that has some kind of value attached to it. It can be jewelry, real estate properties, luxury watches,
shares of companies, government bonds, etc.

Among all the different asset types, real estate is one of the best forms of assets. If you study some of the
richest people in the world, you'll find that their wealth has mainly been accumulated through regular
investments in the real estate industry. No other investment option brings in high and stable returns such
as real estate (provided that you invest wisely without giving way to emotions).

There's actually an interesting article at FinancialSamurai.com that explains why real estate is one of the
best asset classes around. You may want to check that out here – Why Real Estate Is The Best Asset Class.

With that said, here are some reasons why I think real estate is the best asset class for
building long term wealth...

1. Satisfies a fundamental need

A real estate property satisfies a fundamental human need - Shelter. This means that even if the current
financial system we have goes completely out of control, your properties will still be in value (like it did in
countries such as Zimbabwe). The cash (i.e. currency) you possess won't be of any value then.

But assets such as properties, metals (gold, silver, etc) and other material goods will be worth a lot more.
Owning at least one real estate property is the MOST logical thing to do for any human being.

2. Allows you to earn rental income

Now... you may or may not want to live in the house that you're purchasing. If you intend to live in your
home, you can say goodbye to the monthly rent.

But if you have another place that you own already, you can earn residual rental income from all your
other properties. The residual income that you earn can then be used to build up your retirement portfolio
and pay for other lifestyle expenses that you'll encounter.

3. Safety net against inflation

You may fear inflation because it's driving the price of the goods that you purchase. But you don't have to
worry much as long as you own some properties because inflation is actually driving up the value of the
properties you own.
So if your current properties are bringing you a rental income of $2000 a month, you can safely assume
that inflation will increase the rental income to $3000 a month a couple of years from now. It not only
acts as a safety net against inflation but also increases your net worth day by day.

Even though real estate investment is one of the best asset classes to build wealth, it isn't as easy as it
sounds. One of the most challenging things about real estate investments is financing.

The issue is not in finding financing. There are so many lenders out there that are ready to provide you
loans for all of your property investments. The problem lies in getting your loans approved.

These lenders heavily demand that you have consistent cash flow from an income source (business or job)
that exceeds the mortgage payment you'll have to make each month by a significant extent. If you can't
show proof that you have an income source that brings you regular cash flow, you won't be able to get
your loans approved.

Building long-term wealth requires you to own more than just one property. Gone are the days when you
could make a massive killing by just owning one or two properties.

In order to earn an income that leads you to financial freedom, you need to have at least four or five
properties in your portfolio. Finding financing for multiple properties is nearly impossible with a regular
job income.

That's why it's important that you build a business that brings you regular cash flow first. It's one of the
first steps to becoming a successful real estate investor. If you'd like to learn how to build a successful
business that brings you regular cash flow - Click Here (http://taxsalephd.com/page1.php)

To top