Owning property is a fantastic way to build wealth. In fact it can be much better than stock market investing.
The reasons why are because you can build a property portfolio with none of your own money, then you can trade it without ever paying taxes.
Investing with No Money
Don’t get conned into no-money-down deals; they usually go very poorly. What we mean here is that after paying a small initial expense to get a property you will get rent. The profits on that rent will surpass your initial investment, making the cost to you virtually nothing.
The only way to buy stocks is with cash. In fact, to buy $100,000 of stock would cost an equal amount of money, but to buy $100,000 worth of real estate might cost $10,000, which will be paid back in rent many times over.
Whenever you sell stock for a gain there’s a tax on it. Not so with real estate.
If you sell a property – even for a 200% gain – you can trade up to a bigger property using a 1031 exchange and defer the tax, potentially forever.
Knowing these things we think you’ll agree that real estate trumps stocks as an investment.