Should I Invest In Real Estate? - Clues About The Pro's And Cons

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Summary

Hey, everyone, Mike Wolf is here again from Mike Wolf Mastery, coming to you today from Saint Petersburg, Russia. Usually, people ask me “Why do I invest in real estate?” There are stocks, bonds, precious metals, or even bitcoins to invest in. Out of these other options, why would you pick real estate? I’m going to tell you some of my top reasons why real estate is by far the best investment you can make.

Number one is cash flow. That is to say, the income I receive on each of the properties I own on a monthly basis. That’s money that I can actually go and spend any way that I like.
If I own any other investments, If I had a million dollars’ worth of gold, unless I sell the gold, I can’t go to a restaurant and buy a meal. I can’t get on the airplane; they’re not going to let me on just because I say, “Hey, my net worth is a million dollars.” You actually need to have the cash, so cash flow is the king. I need that money coming in again every month. Some people argue that “Well, aren’t there dividend pay on stocks?” Yes, there is a dividend on stocks, but when they spin out their paycheck now and then, the value of the stock actually goes down. The stock becomes less valuable because you just spent a whole lot of money paying on all the shareholders.

I don’t really care about stocks, and that brings me to the second reason which is control. When you own real estate, you decide if you’re going to sell it, rent it, or flip it; you get to call the shots. But when it comes to stocks, you have no control over it. You have no control over the value of the stocks. Today, it goes up and tomorrow it comes down, it fluctuates, and you don’t have any control over that.

Again, after 9/11 the stock market shut down, you couldn’t even sell your stocks even if you want to. At the end of 9/11, my real estate still pays me the same as it did every other month. It is very consistent. You have control; it’s much less manipulative than any other metals and stocks. Then, number three is the tax benefits you get from owning a real estate. A lot of the wealthiest people on the planet own a lot of real estates. If you look at somebody like Warren Buffet, for instance, he owns a lot of real estates and actually he doesn’t need any more cash flow. He is doing just fine. I’m not an accountant, and I’m not a lawyer. Check with your accountant, but in the United States, the residential real estate can typically depreciate over 27 and a half year. You take the value of the structure, divide that by 27 and a half, and you can actually deduct that off of your taxable income once you get it checked with your accountant.

If you own enough real estate, you can bring your taxes down to a very low amount. Warren Buffet openly admits that he pays less as a percentage in taxes than his assistant does. I don’t know what he makes, but I know he is a billionaire. Those are some of the main reasons why you want to invest in real estate amongst many others. If you found this helpful, I want to recommend that you watch my passive income masterclass which is absolutely free. You can sign up, and there is a link in the description below that will take you there. Also, subscribe to my YouTube channel, share my video, there’s somebody who might benefit from it. Like it and comment below. Once again, I’m Mike Wolf, thank you for tuning in. Take care.