Finding ways to protect and grow your wealth in Michigan should be a priority, although doing so is not always easy. One of the best options available is investing in commercial real estate. Here’s why:
Increased return on investment
Commercial real estate has historically performed better than other asset classes. When compared to the companies in the S&P 500 Index, this sector has done just as well or even better in terms of returns over the long term.
Long-term stability
Investing in commercial real estate isn’t a get-rich-quick scheme; it’s an investment vehicle that offers stability and security over time. Unlike stocks that experience sudden swings due to market conditions, long-term leases secure commercial real estate income streams, providing a steady and predictable cash flow.
Tax benefits
Taxes are often a major concern for investors, but commercial real estate might be able to provide some relief. For example, buildings begin to depreciate soon after their acquisition, and the tax code allows owners to defer taxes on those depreciation expenses. There are also other potential tax benefits, such as the ability to write off certain expenses, like repairs and maintenance costs.
More opportunities
Commercial real estate is an asset that you can leverage to increase returns. Thanks to the 2012 Jobs Act, investors can now crowdfund investments in this sector and make them more accessible to those who may not have previously had the means or resources to invest.
It’s an inflation hedge
Investing in commercial real estate offsets the long-term impact of inflation. Real estate owners can adjust the rents with the changing inflation rate, enabling them to generate more income. Furthermore, commercial real estate can appreciate and provide additional financial security over time.
Investing in commercial real estate in Michigan is a smart move for those looking to safeguard and grow their wealth. With its potential for higher returns, long-term stability, tax benefits and more investment opportunities than ever before, it’s an asset class that an investor should consider.