This article is the beginning of a series of articles that focus on investing in residential real estate.

The title of this article raises a very good question. My definitive answer is YES. There are so many valid reasons why you should consider residential real estate as a vehicle for building wealth, some of which are outlined below:

Reason 1: Generally speaking, property is a stable investment. It does not experience the volatility that, for example, the stock market experiences. In fact, well-researched residential properties rarely lose value. . . it can stabilize BUT normally it does not drop in value.

Reason 2: Everyone is involved in the real estate market. In one way or another, each and every one of us is involved in residential property, either as a property owner OR as a renter. This creates a significant demand.

Reason 3: Banks and other financial institutions are happy to lend money using property as collateral. From a bank’s point of view, there is nothing like bricks and mortar as collateral for loans.
 
Reason 4 Tax benefits help pay expenses. In effect, this helps with the purchase of an investment property. These benefits include tax deductions for relevant expenses such as fees, interest, repairs, property management, and depreciation.

Reason 5: You can add value and achieve immediate capital gains. There are many ways to add value to the property. One of my favorites is to focus on cosmetic changes. In other words, focus on minor expenses like a fresh coat of paint, new door handles, new kitchen cabinet doors, new light fixtures, etc.

Reason 6: Rental income will eventually cover more than the associated expenses. I recommend keeping the property for the long term. In my experience, and this depends on the circumstances of each individual property, it takes approximately 4-5 years for a negatively oriented property to become positively oriented. Once that happens, not only is the property costing you nothing, but you’re actually putting cash in your pocket.

Reason 7: Property ownership is relatively familiar to most people. This makes buying a residential property a much easier option to hit.

Reason 8: Generally, on average, real estate doubles in value every 7 to 10 years. This becomes a mandatory method of saving AND when the rent increases enough, you can put money in your pocket.

Reason 9: You don’t need to make a fortune to invest in residential real estate. Many real estate investors earn less than $40,000 per year. It’s not necessarily how much you earn that counts, but what you do with what you earn.

These 9 reasons only scratch the surface. In my opinion, there are literally hundreds of reasons to consider residential real estate as your primary investment tool. Let’s face it, unless history changes, a well-chosen property will result in greater wealth.

We could go ahead, however I hope I have convinced you to at least consider residential real estate as a serious option as your wealth creation vehicle.

A mistake when buying a residential property can be costly and long term. If you are not an experienced real estate investor, I strongly suggest that you gain sufficient knowledge through self-education OR cut the process short and hire professional buyers’ agents.