As a rule, we all want to provide safety, security, and stability to our children. In addition, we want to give the next generation the ability to provide for themselves and their children. To do that, we need to have the financial resources to provide for immediate needs and quality education. And today, we are going to look at how real estate can allow you to create your generational wealth.
The Best Return on Investment
When you are thinking about saving money, you naturally look for the solution that will provide you with the best return on your money. You want the highest interest rate. But when you compare what a bank is willing to give you for your investment and what you will earn if you invest in real estate, there is really no comparison. Banks often offer a few percent at best. However, a real estate investment can actually double overtime. And real estate is not likely to devalue in the same manner as most investments. Even money in the bank loses some value due to depreciation.
Less Liquid
Humans are easily tempted. And when you have your money in a savings account, in stocks or other very liquid investments, it is easy to turn those savings into cash. And unfortunately, that cash is all too often spent in a wasteful manner. However, real estate is not something that you can quickly and easily turn into cash on a whim. Instead, you need to go through a somewhat lengthy process to convert it to cash. That time is a safety feature that keeps many real estate investors from wasting their hard-earned money on something consumable or that will lose value.
Stable Income
Real estate is one of the few investment opportunities that will provide you with a sizable and steady income. Multifamily rental properties provide owners with rental income each month that cover the property’s cost and return a profit. And as the property value increases, so with the amount of rent that you will be earning from your tenants. This is the perfect way to create a guaranteed income for your children as they grow into adults and begin to provide for the next generation of your family.
Generational wealth is about creating long-term financial security for your family. By investing in real estate, you will be growing your money more rapidly, securely, and safely than you could with any other investment type. And that will provide for your immediate financial needs as well as the needs of future generations.
