If you have experienced the recent economic and financial depression, then investing in real estate might feel like a sore topic. Less than a decade ago, around one in four houses were up for sale in California’s central valley. But times have changed. Recent years have seen an enormous leap in the real estate market. If you are thinking of investing, it does not matter if you are an experienced or a novice investor, then real estate might be the right market for you.
With real estate investment, you can create wealth and an economic safety net for your future generations. Real estate investment has several perks that can help in building generational wealth. These perks include appreciation and sustainable cash flow.
Generational wealth is one of the best gifts that you can give to your children in these economic circumstances. So, let’s find out what generational wealth is and how real estate investment could be the perfect way to generate wealth for your future generations.
What is Generational Wealth?
Generational wealth can be defined as those resources that you leave for your future generations. Leaving your family something to rely on financially could prove quite helpful. We also know generational wealth as family wealth or legacy wealth. You can generate wealth for your family in plenty of forms. It can be in the form of real estate, stocks, jewelry, currency, antiquities, art, and life insurance.
Generational wealth can make your children’s and grandchildren’s life a lot easier. You can understand its importance even better if you have started your economic journey from scratch. Think back on every time you wished you had strong financial support when you needed it the most. Whether it was paying off your student loans, buying your first house, or starting a new business. Wouldn’t you want your future generations don’t have to think like that?
The more you think about it, the more you will realize how important it is to have a plan for your future generations. Real estate investment is a great way to kick start your generational wealth journey. Not only will it facilitate you in expanding your investment portfolio, but it will also help in leaving something your kids can rely on.
Real Estate Investment
Real estate investment is one of the biggest, most reliable, and rewarding investment opportunities out there. Unlike other investment options like stocks, jewelry, and life insurance, real estate investment can provide a stable revenue source. We estimate that around ninety percent of millionaires have achieved their humongous net worth by investing in real estate.
The beauty of real estate investment is that you can see your net worth growing, not as numbers on a document but as something you can touch and feel. If you hold on to your property long enough, it can be a huge part of your generational wealth. We have compiled some pertinent information on why and how you should invest in real estate.
Properties and Appreciation Produces a Border Against Inflation
It is common knowledge by now that any property will appreciate over time, whether it is residential or commercial property. This appreciation can provide firm support in hard times. Usually, property owners welcome inflation as it brings higher appreciations to their properties. Imagine buying a piece of land for 5000 USD and after two years selling it for 7000 USD. Now that is some profit.
If you invest in real estate, not only you won’t have to worry about inflation, but you can also generate a passive income while simultaneously building up equity.
A Steady Income
Now, as an investor, you cannot wait around for years for the property to build up enough appreciation to sell. A wise investor will look for rental properties to invest in. That way, they will generate a steady source of income that can increase with time. Successful investors all over the world use this strategy to increase their net worth. It is a great way to build up equity and create an additional income source to finance your passion projects.
Supporting Future Generations
Real estate is a great way to support future generations. You can bequeath your property, as an inheritance, to your kids and grandkids. This way, they will also enjoy all the tax cuts and revenue streams you have worked so hard for. Your property will be your legacy, which your children can later take forward.
Ways to Invest in Real Estate
If you know little about real estate investment, then, the entire ordeal might seem daunting at first. To assist you in making your first investment, we have compiled a list of areas where you can invest in getting the maximum returns on your investment.
- Investing in Family Homes
If you can lease a single-family unit, you will secure 12 months’ worth of revenue. In the real estate business, these tenants are in high demand as investors consider them “quality tenants.” Since they are not living in an apartment, they take pride in living in a separate home.
- Multi-Unit Investment
These investments are highly rewarding as they provide several revenue streams from a single roof. It is also very convenient because your income is not dependent on a single tenant. Even if a tenant leaves your building, you will have the rest of them to keep your cash flowing.
- Investing in an Apartment Building
An apartment building with at least 6 to 7 units can improve your revenue streams. With good property management, you can help your property’s appreciation greatly. You can witness a huge jump in cash flow within 3 to 5 years.
- Investing in a Multi-Functional Building
It categorizes buildings which have strip malls and offers some residence in multi-functional or mixed-use buildings. Buying such properties will help you secure long-term leases (5-10 years) and short-term leases (12+ months) for the apartments.
Creating generational wealth should be an essential part of anyone’s long-term financial plan. It will not only give your children something to rely on in the future but also gives you an opportunity to leave a legacy for your kids and grandkids to remember you by.
To learn more about passively investing in multi-family real estate, visit our website https://www.premierridgecapital.com/