Here’s a real life scenario – you have $50,000 in cash. What do you do with it?

Some easy possibilities may be:

• Keep it in the bank, possibly in an interest bearing account such as savings or CD
• Maybe you like fast cars, invest this money on a down-payment of a depreciating toy such as that new high-end Tesla you saw
• Or buy something that can make you money in the long term, a real estate.

The term “real” in real estate refers to something that is tangible (something you can touch, see, or feel) and are limited here on earth. This limitation is what makes Real Estate so attractive as a form of long-term life investment.

People shy away from purchasing real estate because it requires a big lump of money (like that $50,000 we started with) and may not always be as showy as a brand new Tesla. However, the wealthy know that by buying real estate early in life, then paying off the mortgage over the years instead of renting is the way to success. (To be fully clear, you should own your Teslas and other fancy toys along the way; just don’t do it in the wrong order and lose your chances to buy something more valuable. High debts on items that go down in value will prevent you from purchasing a home, perhaps for a lifetime.)

When you buy from young age, then after paying off the mortgage for, let’s say, ten years, you have also built up equity (money you can take out to use) so that you can use that fund to purchase another property, and another, and another. This is how many people have built up their wealth over time.

The problem is that many people, hopefully not you, are impulsive and would rather not wait for that time of wealth and rather spend their money now on items that lose value over time. How many people do you know that have purchased expensive cars to show off to others while they are renting and paying off another person’s mortgage?

Real Estate is something can only appreciate (go up in value) over the years because of simple economic principle – supply and demand.

• First, Real Estate, or land, is limited. This is the limited supply here on earth.
• Second, there will ALWAYS be a demand. People need places to live. Therefore, people that own these will have power, especially as the population continues to grow.
• Note that due to advances in medical fields, people live longer and most children survive birth unlike a century ago. Real Estate ownership survives you and passes to your heirs.

So, bottom line, if you wish to be wealthy over time and pass on that wealth to your children, you want to invest your money in Real Estate. This is especially encouraged if you are renting today, but even if you own your home, building your estates will ensure greater financial security for you and your heirs.

Selah Realty (Your Residential Dream Home Advisors) and Sciturus Real Investment Group (Commercial Real Estate Investments) are best suited to educate you through the process and help you secure properties that will make you wealthy over time. Connect with us to improve your financial position.