Are you on track toward meeting your estate-planning goals? Many people stick with the tried-and-true investment strategies of accruing index funds and stocks. But if you are looking for ways to diversify your estate plan you might want to consider a real estate investment.
This strategy is far more hands-on than simply perusing your quarterly reports on your stock portfolio. Even if you use a property management company (highly recommended), you still will have far more activity involved with this type of estate plan investment.
Why purchase real estate?
Well for one thing, as this quote by Mark Twain illustrates, “Buy land, they’re not making it anymore.” It’s true that most well-researched real estate purchases are solid investments for the future. You also have flexibility with real estate. Do you want to rent it out? Develop or subdivide it?
All may be possible, but it’s likely you will need some guidance during the process of becoming a real estate investor. For instance, are you seeking residential or commercial properties? Depending on your intentions, you might need to apply for a zoning variance to achieve the results you want from your property.
Leaving a lasting legacy
Real estate investments may appear daunting to the uninitiated, but this form of estate planning is quite lucrative. Those seeking generational wealth to ensure the financial stability of their heirs often find this type of investment to be a prudent choice.
As always when making important financial decisions, make sure that you have done your due diligence by thoroughly researching the property’s history and assuring that the title is clear and unencumbered.