The successful love real estate.
“I became a millionaire because of real estate.” – Arnold Schwarzenegger
Did you know Arnold Schwarzenegger first made his wealth through apartment investing before making it big in movies? In fact, he still loves and owns apartment properties.
I have read a few books this Summer by very successful people, including Grant Cardone, Tony Robbins and Darren Hardy, and in addition to being motivational speakers and self-development gurus, they all preach about the power of real estate investing.
Arnold has a great book out too, Be Useful: Seven Tools for Life.
Although they are all approaching the billionaire level and love apartment investing, they are not the biggest in the space (I think Arnold just hit $1B). The Forbes list is full of billionaires who made their money in real estate and those who didn’t ‘make’ their money in real estate still put a lot of their money in real estate (~25% of their portfolio).
Successful celebrities love real estate investing.
These celebrities, like many wealthy individuals, understand the value of real estate as a means of building and preserving wealth. By investing in property, they not only enjoy the benefits of ownership but also create opportunities for long-term financial growth.
The Wealthy Love Real Estate
Real estate has long been a favored investment among the wealthy for several compelling reasons.
Firstly, real estate is a tangible asset that provides a sense of security. Unlike stocks or bonds, which are more volatile, real estate offers something concrete that can be seen and touched. This tangibility appeals to investors who prefer stability and the ability to have direct control over their assets.
Secondly, real estate offers significant tax advantages. Many countries provide tax incentives for property owners, such as deductions on mortgage interest and property taxes, as well as depreciation. The ability to defer capital gains taxes through mechanisms like the 1031 exchange in the United States is another big advantage. These tax benefits can enhance the profitability of real estate investments.
Another reason the wealthy gravitate toward real estate is the potential for appreciation. Over time, real estate increases in value, particularly in desirable locations. This appreciation can lead to substantial returns, whether the properties are held long-term or renovated quickly.
Moreover, real estate can generate passive income through rental properties, making it an attractive investment for those seeking steady cash flow.
Real estate also provides diversification, which is crucial for wealth preservation. By including real estate in their investment portfolios, the wealthy can spread risk across different asset classes, reducing the impact of market fluctuations on their overall wealth.
What’s not to love?! Great returns, low risk, tax advantages… the list goes on. In fact, I made a presentation entitled The Greatest Investments check it out!
