15 Reasons Why Real Estate is the Best Investment

Dusty Rhodes • May 20, 2024

Investing in real estate can feel like a big decision and one you shouldn’t take lightly, but it’s also one of the best decisions you can make. 


You have many options for using your capital to grow your net worth and save for the future. Here are 15 reasons why real estate is the best investment.


1. It’s a Tangible Asset


Investing money can be scary for investors, especially when you can’t see or touch it, such as investing in stocks or cryptocurrency. On the other hand, you can see, feel, and even control real estate. 


This gives investors greater peace of mind, knowing they can renovate, repair, or even sell the asset but still be in control.


When you sell stocks, for example, you have no control over their value. You are at the mercy of the market price and current demand. While a real estate market determines the property’s value, you can do more to increase the property’s value to earn greater capital gains.


2. Real Estate Provides Cash Flow


Trading your money for an investment is a big deal. When you don’t see anything from it until you sell the asset, it can be frustrating or even cause you to want to sell it just to see your cash again.


When purchased and used as rental properties, real estate provides cash flow. You earn cash from the monthly rent, plus, of course, any profits earned from selling the property. 


While you must factor in vacancies and bad renters, you’ll likely have more consistent cash flow than with other investments, like stocks or ETFs.


3. Real Estate Is a Hedge Against Inflation

When inflation rises, the power of the dollar falls. As prices increase for various goods and services, so does the value of properties and rental prices. 


If you own a rental property, you may be able to charge higher rents when the lease renews or you get new tenants. You’re also better positioned to earn higher profits when you sell the property during inflationary periods because of higher costs.


On the other hand, stocks typically decrease in value because companies often struggle during periods of inflation. Companies must charge higher prices to cover their higher costs, but with consumer spending down during inflation, stock values typically decrease.


4. Real Estate Investors Get Tax Deductions

Real estate investors are often eligible for 
tax deductions that other investors, like stock or bond investors, don’t get. 


The most common deductions are for depreciation (27.5 years for residential buildings and 39 years for commercial buildings), mortgage interest, maintenance and repairs, property taxes, and travel expenses.


Of course, tax deductions vary depending on the location, how you own the property, and other tax-related scenarios. Always consult your tax advisor to determine how to best file your taxes to take advantage of real estate tax deductions.


5. You Can Leverage Your Investment


Typically, you can only invest as much cash as you have, but real estate allows you to leverage your investment with mortgage financing. 


For example, if you want to purchase a $200,000 home but only have $50,000, you may be able to put the $50,000 down and borrow the rest. This enables you to purchase a home for $200,000 without investing dollar for dollar.


While you can invest on margin with stock investing, it’s a more complicated scenario, and not everyone qualifies. Mortgage financing has more flexibility and is available to many investors.


6. Property Appreciation Is Likely

There are few guarantees in life when it comes to investing. You cannot guarantee or assume that a company’s stock value will increase or that the company will stay in business. 


But you can count on property appreciation if you do your due diligence and invest in an area where property values typically appreciate.


As mentioned, you also have a certain level of control regarding property appreciation, as you can force it by upgrading or renovating the property. Working with a reputable real estate agent can ensure you invest in an area with appreciating values.


7. Real Estate Doesn’t Correlate With the Stock Market


The No. 1 rule in investing is to diversify your portfolio, which means don’t put all your money in one type of investment, such as stocks. Diversifying your portfolio with real estate increases your chances of seeing capital gains, no matter what happens in the market.


This means if the stock market crashes, real estate won’t necessarily follow, ensuring your portfolio isn’t a total loss, even in a challenging market.


8. Real Estate Investing Can Be Hands-Off

If you’re hoping for a hands-off investment, you can invest in real estate passively. Here are a few ways:

  • Purchase a rental property and pay a property management company to handle the day-to-day operations.
  • Invest in real estate investment trusts (REITs), earning a portion of the company’s profits while they purchase and manage properties.
  • Invest in real estate crowdfunding, which is a group investment in real estate, paying you some of the profits according to the amount of your investment.


9. Cash Flow Can Be Predictable


If you invest in the stock market, you cannot predict how much you’ll make. There’s usually no cash flow unless you invest in dividend stocks, and even those aren’t predictable because you don’t know how much profit a company will earn or what dividends they’ll pay.


Real estate allows predictable cash flow because you control how much rent you charge and any other monies you collect. While you can’t predict your capital gains to the dollar, you know how much money you’ll bring in monthly.


10. You Build Equity Over Time


Whether you leverage your investment with a mortgage or pay for the property outright, you build equity by paying down the mortgage and/or the property’s natural appreciation.


Equity is the money you’d earn if you sold the property today. The equity increases your net worth and typically increases each year you own it.


11. You Have Many Options

Real estate investors have numerous options to invest in. We discussed the passive opportunities, including REITs and crowdfunding. If you’re looking for an active real estate investment, your options include:

  • Buy and rent properties to tenants.
  • Purchase commercial properties, renting to businesses.
  • Fix and flip properties, earning a fast profit.


12. Real Estate Investments Provide Security

There’s not much to feel secure about when you invest in stocks. You’re taking a chance on a company, hoping it succeeds and its stock value increases, but it’s a gamble.


When you invest in real estate, you have a tangible, appreciating asset. This provides peace of mind knowing you have this property that, if necessary, you could sell and liquidate your investment, or hold on to it and keep it growing.


13. You Can Borrow Against Real Estate


When you build equity in your real estate investments, you may be eligible to borrow against them. This decreases your property equity but allows you to liquidate a portion of your investment without selling it. 


To liquidate your investment in stocks, you must sell your shares; you can’t borrow against them while still owning them and allowing them to continue appreciating like real estate.


14. Real Estate Investments Can Benefit the Community


Even though you’re likely focusing on yourself and the reasons real estate is the best investment, it’s good for the community, too. 


When you purchase, renovate, and maintain a property, you help the area’s property values. It also provides another viable property for families to use, helping to improve the community.


15. Real Estate Investing Can Be a Business

Stock market investing is simply investing. You don’t get special tax deductions or treatment for it. Real estate investing, though, can be a business that you actively participate in, growing your portfolio and making a living for yourself and your family.


Final Thoughts


These 15 reasons why real estate is the best investment are reason enough to diversify your capital and invest in real estate. 


Whether you’re looking at your first real estate investment or you want to expand your portfolio, there are numerous benefits for doing so, giving you access to equity, cash flow, and a tangible asset that gives you control.




Source: BiggerPockets Blog


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

Share

By Dusty Rhodes January 19, 2026
If you’re thinking about selling your house this year, you may be torn between two options: Do you sell it as-is and make it easier on yourself? No repairs. No effort. Or do you fix it up a bit first – so it shows well and sells for as much as possible? In 2026, that decision matters more than it used to. Here’s what you need to know. More Competition Means Your Home’s Condition Is More Important Again Over the past year, the number of homes for sale has been climbing. And this year, a Realtor.com forecast says it could go up another 8.9% . That matters. As buyers gain more options, they also re-gain the ability to be selective. So, the details are starting to count again. That’s one reason most sellers choose to make some updates before listing. According to a recent study from the National Association of Realtors (NAR), two-thirds of sellers (65%) completed minor repairs or improvements before selling ( the blue and the green in the chart below ). And only one-third (35%) sold as-is : 
By Dusty Rhodes January 12, 2026
Smart home devices are becoming increasingly common. From webcams to thermostats, to TVs and even AI-improved refrigerators, homeowners have an array of choices to make their lives easier. These devices can also boost home prices, making them a worthwhile investment. Yet, these smart home gadgets can also be compromised and are subject to a slew of cybersecurity threats. In fact, Rambus , a chip and silicon IP provider, found that an eye-popping 80% of Internet of Things (IoT) devices “are vulnerable to a wide range of attacks.” Mike Halbouni , founder of PoyntGuard , a security camera and surveillance installation company, said that as homes become more connected, cybersecurity is just as critical as physical security. “Every smart device that connects to your network, including cameras, doorbells, thermostats, smart locks, and voice assistants, can become a potential entry point for hackers if not properly secured,” he said. Common cybersecurity threats, from weak passwords and credentials Jason Chen , technical director and tech expert at JarnisTech , a professional electronics manufacturer, said that the more “smart” your home gets, the more exposed you become. “Convenience has a cost, and that cost is usually hidden in the fine print of your device’s security settings,” he said. The most threat to your smart home security comes from weak default credentials and passwords, according to Thomas S. Hyslip , assistant professor of instruction for the M.S. in cybercrime program in the criminology department at the University of South Florida . As Hyslip explained, many smart devices, including smart cameras, baby monitors, smart doorbells, network routers, and smart hubs, are shipped with publicly known or easily guessable factory passwords and settings, such as "admin" or "123456.” “Cybercriminals use automated tools to scan the internet, searching for devices with these default settings to gain immediate and full control, potentially compromising your entire home network,” he said. To mitigate this threat, homeowners must change passwords immediately and often. Another tip: Avoid inexpensive IoT devices with hard-coded, unchangeable passwords, as these products are permanently vulnerable to takeover and pose an unacceptable risk to your network security, he added. Lack of knowledge Tony Anscombe , chief security evangelist at ESET, a cybersecurity vendor, echoed the sentiment, saying that smart devices introduce several potential risks, the primary ones being privacy and security. Anscombe added that consumers need to ensure they understand exactly what data is being collected by smart devices, how it’s being secured, where it’s being stored, and whether it will be used for any other purposes or shared with a third party. Tim Kravchunovsky , CEO of Chirp , an IoT solutions provider for short-term rentals, also said that the biggest cybersecurity threat most homeowners face isn’t a single device, it's their own home network and IT knowledge. “Depending on how much home automation someone has, their devices may hold extremely sensitive information. Yet most people who automate their homes aren’t very technical, and that lack of expertise creates wide security gaps,” he said. He added that nearly all consumer IoT devices operate over Wi-Fi. Once an attacker gains access to a home’s Wi-Fi network, which is often far easier than people think, they can pivot to the devices themselves and access the data flowing through them. “Businesses recognized this risk years ago, which is why many now isolate IoT devices in a completely separate environment rather than letting them live on the main network,” he said. Smart cameras and doorbells According to Chen, these devices, which are designed to keep you safe, are actually easy prey for hackers themselves. “I know individuals who have used hacked cameras to spy on families, to record them inappropriately, to even broadcast those feeds for everyone to see without their consent,” he said, adding that this happens because many people never update default passwords, update firmware, or connect cameras to their main Wi-Fi networks. “A hacker, after penetrating, can monitor all of your movements—literally,” he said. Chen added that to fix this, there are several steps you can take: turn on two-factor authentication (2FA); change all default login credentials; and set up a separate Wi-Fi network just for smart devices. Smart speakers and voice assistants Dave Meister , cybersecurity evangelist of Check Point Software Technologies , said there have been instances in which attackers have tricked these devices into making purchases or controlling other smart-home features. They’re also constantly listening, which makes them a privacy risk if not configured well, he said. What to do: According to Meister, turn off voice-purchasing, use strong and unique passwords, and use the physical mute button when you’re not using it. And as Chen said: “The golden rule here is if a device is always listening, assume it is always collecting and act accordingly.” Smart locks and garage systems Smart locks make life easier, especially for those among us who constantly forget where they put their keys. However, as Chen put it, these introduce a terrifying vulnerability: If someone compromises your smartphone or your Wi-Fi, your front door could literally unlock for them. “The same goes for connected garage systems. Many rely on cloud-based apps that, if breached, could grant access to your home in seconds,” he said. Instead, Chen urges homeowners to use locks with end-to-end encryption; lock down your smartphone with biometrics and remote wipe options; and audit who has access—remove old guest codes or app permissions you’ve forgotten about. Smart TVs and streaming devices Gene Petrino , lead adviser for Security.org , a company specializing in personal and home security, and a retired SWAT commander, said that many devices include microphones and cameras that can be exploited if security is weak. Petrino recommends turning off unused connectivity features, such as voice control and camera, and only installing apps from trusted sources. In addition, he urges homeowners to enable firmware updates regularly. “Think of your smart home like a digital ecosystem; each device is a door. The more devices you connect, the more doors you create. Secure each one with strong passwords, regular updates, and separate networks for critical systems,” he said. Check Point Software Technologies’ Meister added that, surprisingly, these are among the most vulnerable devices in the home. “A lot of the cheaper streaming boxes run old software, and we’ve seen cases this year where malware actually came pre-installed on knockoff devices people bought online. Once they’re plugged in, they can be used for things like click-fraud or even large-scale attacks,” he said. Meister offered another tip: Stick to reputable brands and keep up to date. Home Wi-Fi router “The router is basically the front door to your digital house,” said Meister. As he noted, the average home sees dozens of attack attempts a day, and a lot of IoT traffic isn’t encrypted at all. If your router is old or still using the default login, it’s an easy target. What you can do is use a strong Wi-Fi password and turn on automatic updates, he said. Smart thermostats Security.org’s Petrino said attackers can gather data on your daily routines—like when you’re home or away—or use unsecured devices to access your entire Wi-Fi network. He said that homeowners should create a separate network for smart devices, use strong router passwords and WPA3 encryption, and avoid connecting unnecessary appliances to the internet. Meister also cautions that many owners don’t realize appliances can be hacked, too, and that older or cheap models often never get software updates, which means any vulnerability lives forever. His advice? Before buying, check whether the brand actually updates its products. And if a device stops getting updates, it’s time to replace it. “If I had to give homeowners one simple rule, it’d be this: Treat every smart device like a tiny computer. Update it, use a strong password, and don’t put it on the same network as the devices that actually matter, like your laptop or phone,” he added. 
By Dusty Rhodes January 5, 2026
Downsizing your home is a major decision, and the right moment to act is not always obvious. The best time to downsize is whenever your current home no longer aligns with your financial, lifestyle, or personal needs. It’s less about the market and more about your life stage. But deciding to downsize can be hard, and leaving a home filled with cherished memories can bring heartache. So, when is the right time to downsize? If owning your home in Seattle, WA , or renting a house in Portland, OR , has brought more stress and worry than joy in recent years, the time may be right to downsize into something smaller. In this Redfin real estate article, we’ll explore how, by considering financial, emotional, and maintenance factors, you can determine if now is the perfect time to trade your large property for a smaller, more manageable space. Financial signs you should consider downsizing Your finances often provide the clearest signal that it is time to downsize. Carrying a large mortgage or facing ever-increasing utility and maintenance bills can put unnecessary strain on your budget. High maintenance costs : Is your maintenance budget constantly being stretched by repairs on a large or older home? The costs of running and maintaining unused square footage add up significantly over time. Downsizing can drastically reduce these expenses, freeing up money for other goals. Nearing or entering retirement : Many people choose to downsize right before or as they enter retirement. This is an excellent opportunity to reduce housing payments, eliminate your mortgage, and unlock home equity. As Patricia Cavanaugh of The 3rd Act , a retirement planning service for seniors, says, “It’s time to downsize when your personal possessions and material goods are weighing you down and preventing you from making room for your new retirement lifestyle.” Desire to free up equity : Selling a larger, more expensive home and buying a smaller one means you will have a substantial amount of equity released. This money can be used to travel, invest, or simply create a more secure financial cushion for the future. Lifestyle and emotional indicators Beyond money, your day-to-day life is a powerful indicator of whether a smaller home makes sense. The way you use your space can reveal if your home is now too big for your needs. Living a simpler life may offer helpful benefits to your emotional and mental health. Becoming an empty nester : When your children move out, you might find yourself with multiple unused bedrooms and living areas. This space not only costs money to maintain and heat, but it can also feel unnecessary. Downsizing to a cozier home allows you to repurpose that space and focus on a new, simpler chapter. Too much unused space: Walk through your home and identify rooms you rarely or never use. If you have rooms that feel like storage areas rather than functional living spaces, it is a sign that your home is simply too large for your current lifestyle. Downsizing allows you to live more efficiently. A simpler, less demanding life : Large properties require a lot of effort to clean, maintain, and landscape. If you are starting to feel burdened by the chores associated with your home, downsizing to a smaller house or a low-maintenance condo can dramatically improve your quality of life. This trade-off gives you more time for hobbies or relaxation. What about the housing market? While your personal situation is the most important factor, the market can influence your timing. The best financial time to downsize is generally when your current home’s value is high. This allows you to maximize the profit from the sale, which directly translates to more funds for your smaller purchase. However, remember that when sale prices are high, so are purchase prices. A good real estate agent can help you analyze the market to find a sweet spot where you achieve the best outcome on both transactions. Making the move Once you decide it is the right time to downsize , the next big step is to declutter. This process can be the most time-consuming part of the move. Leaving an old home can be an emotional process, so the best approach is to start early and be ruthless about what you truly need. Focus on organizing, donating, and selling items well before you list your property . Frequently asked questions: What is the main benefit of downsizing? The main benefit is financial: Reducing your monthly expenses, cutting utility and maintenance bills, and freeing up a significant amount of home equity. Will downsizing definitely save me money? In most cases, yes. While the cost of moving and closing on a new, smaller home is a factor, the long-term savings from lower property taxes , lower utility costs, and reduced or eliminated mortgage payments almost always result in substantial savings. What should I do before I list my current home? The most important step is decluttering and organizing every space. A home that is neat and free of excess belongings shows much better to potential buyers and makes your eventual move much easier.