Real estate investing has been a successful wealth-building tool for people of all backgrounds – even those without experience. If you’re a pharmacist or healthcare professional, you understand the pressures the industry puts on you and your finances. So why not consider real estate investing as a way to supplement your income?
Here are five reasons why every pharmacist and healthcare professional should consider investing in real estate.
- Real estate can be a secure investment
The real estate market experiences much fewer fluctuations than stocks and bonds. This is because real estate isn’t as vulnerable to external changes, such as global and domestic politics, and because there will always be an inherent demand. Less volatility means a safer investment.
Rather than having all of your funds tied up in more vulnerable investments like stocks, you can invest in different types of real estate assets such as shopping complexes or office spaces to keep your eggs in different baskets.
- Earn a passive income
The great thing about real estate syndications is that they provide a passive income stream. This means you, as the investor, do not need to be hands-on with the day-to-day operations of the investment. You won’t need to worry about sourcing, managing, or maintaining the real estate asset. After your initial investment, you can sit back, let the investment do its work, and make money in your sleep. In professions like pharmacy and healthcare, this break is very welcomed!
- High return on investment
There’s a reason Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate. In 2022, demand and inflation have pushed rental prices sky-high. Commercial properties, in particular, are great investments because of the price points and length of the leases. Businesses are less likely to up and move their operating space than residential renters, so you can count on steady cash flow rather than shuffling between tenants.
- Hedge against inflation
In 2022, we’re no strangers to inflation. The good thing about real estate is that as the value of everything around us rises (gas, groceries, and everything in between), so does the value of our homes and investment properties. Fannie Mae predicts housing prices will rise 0.8% in 2022 and another 3.2% in 2023. ‘Hard assets’ like real estate and land become more scarce and in demand, allowing homeowners and
investors to ride the wave of inflation.
- Lower your taxable income
There are several tax incentives for real estate entrepreneurs to encourage investment and development in the housing sector. With syndication investments, you can get tax breaks in the following ways:
● Depreciation breaks
● Mortgage interest deductions
● No self-employment tax
Even though the value of your property most likely appreciates, as real estate does, you can write off a portion of the property’s depreciated value.
How does this work? For tax purposes, the property loses value every year as it ages. So while
you take advantage of market value appreciation, you are also deferring taxable income