5 Shocking Reasons Why Real Estate is the Best Investment for Beginners (You Won’t Believe #3!)

by Skylar St. Pierre

If you've been considering getting into investing but aren’t sure where to start, let me introduce you to the most proven way to build wealth over time: real estate. Unlike stocks or crypto, real estate offers tangible, long-term growth with fewer risks (and the occasional bonus of passive income). Let’s dive into five shocking reasons why real estate is your best bet as a beginner investor!

1. You Don’t Need to Be an Expert

You might think that you need years of experience or a degree in finance to be successful in real estate investing, but that's far from the truth. In fact, many successful investors started without any formal knowledge. According to a 2023 BiggerPockets survey, over 60% of first-time investors said they had no real estate background before starting but found success by educating themselves with resources like online forums, podcasts, and real estate meetups.

2. Steady Cash Flow with Rent Payments

Unlike most traditional investments, real estate allows you to collect monthly rent checks from tenants, giving you a consistent stream of income. According to 2024 data from Zillow, the national median rent has increased by nearly 6.5% year-over-year, meaning that rental properties have become even more lucrative for investors. You can literally make money while you sleep, and the rent prices are only trending upwards!

3. Appreciation—Your Property’s Value Grows Over Time

Here’s the part most people don’t realize: your property’s value tends to increase over time (a concept known as appreciation). In fact, according to the National Association of Realtors (NAR), the median price of existing homes in the U.S. rose by 7.7% over the last year. It means that even if you don’t plan to sell right away, your property could be worth thousands more in just a few years.

4. Tax Benefits That Can Save You Thousands

The tax code is surprisingly kind to real estate investors. You can deduct mortgage interest, property taxes, operating expenses, depreciation, and more! A 2023 Forbes article highlighted that the average real estate investor saves between 10-20% on their taxable income annually through these deductions, allowing them to reinvest their savings into new properties or upgrades.

5. Leverage—The Secret to Building Wealth Faster

With real estate, you can leverage other people's money (i.e., bank loans) to buy properties. You don’t need to have the full amount of cash upfront like other investments. According to a 2023 Freddie Mac study, 87% of real estate investors used financing to purchase their first property, often putting down just 5-20%. Leverage allows you to own a valuable asset that grows over time, while your tenants help pay down your mortgage.

Conclusion:

Ready to take the plunge? Real estate is a beginner-friendly way to start building wealth, thanks to its steady cash flow, appreciation, tax benefits, and leverage. You don’t need a finance degree to succeed—just the right strategy and a commitment to making smart moves. If you're intereseted in unlocking your strategy to success, reach out to me here for your complimentary consultation. Stay tuned for more tips and tricks to help you start your real estate investing journey!

Source: