If you’re looking to strengthen your portfolio and choose a more secure financial future, investing in real estate is the way to go. Home prices across the US are continuing to rise with no end in, while many experts predict that rents and rental income will grow in a positive direction for years to come.

What’s more, the returns on real estate investments have consistently outpaced the stock market over the past few decades, making bricks and mortar the soundest investments out there. If this is not enough to convince you, keep on reading to find out the main reasons to invest in real estate in 2021. 

1. Investing in Real Estate Means Stronger Returns

Put simply, you cannot find consistently better returns for any other asset. This is one of the key benefits of investing in real estate. When you know how to invest in real estate, you are choosing an asset class that outperforms every other asset class virtually all of the time. The stock market typically offers returns of 1-2% per year. Meanwhile, real estate returns have consistently averaged 6% per year or more. What’s not to like? 

2. A Very Higher Tangible Asset Value

With typical assets such as stocks and bonds, there is always a risk that you will lose 100% of your investment. Your stock portfolio can easily drop to almost nothing if the market goes against you. This will never happen with a real estate investment. Even if your asset does not appreciate as much as you would have liked, its baseline value will always remain high. This makes real estate an investment you can trust for a lifetime. 

3. Managing Real Estate Is Easier Than Ever 

One reason why many people are hesitant to start owning rental properties is that they are scared that the costs and time spent managing properties and tenants will be too much. However, managing your real estate is now easier than ever before. By consulting expert property managers, you can outsource every single aspect of your property management for a stable, flat fee. This means that you do not have to worry about maintaining your investment. 

4. A Natural Hedge Against Inflation 

Inflation is an inescapable economic fact. It is something that erodes the value of most assets and even destroys the value of the cash sitting in your bank account. That’s why savvy investors always include a hedge against inflation in their portfolios. Real estate is one of the most effective examples of this, as it is an asset class that has consistently risen above and beyond inflation for decades, even during recessions. 

5. Tax Benefits You Can’t Find Elsewhere 

Few other assets offer the kind of tax breaks that real estate does. You can deduct all of your mortgage interest on an investment property from your tax bill in some cases. You can even deduct the depreciation of your assets from your tax bill, reducing your risks substantially. You simply cannot get these kinds of IRS deals from any other asset class. 

More Expert Insights for Investing in Your Future

Now that you know the essential reasons for investing in real estate, it is time to get started. For expert insights on the hottest markets and investment trends, we have got you covered. Make sure to consult our Real Estate Investment guides to learn more.