Why You Shouldn't Wait to Invest in Real Estate

By Fernando Reza

Our 72-hour program is designed to put you in control. You'll have the freedom to choose your sale date, closing date, and even have the option to stay in your home for a while after closing. Our flexible approach caters to your unique needs, giving you peace of mind and control throughout the entire process.

Is inflation quietly shrinking your savings account? Lately, several clients have mentioned they’re unsure about investing their money due to economic uncertainty. Keeping money in the bank might feel safe, but inflation means every dollar buys less tomorrow than it does today. Over time, that slowly eats away at your financial security.

Now, the question is, “What can you do to overcome inflation?” Many people are turning toward real estate to preserve and build their wealth. It’s not flashy—it’s simply proven. Here’s exactly why investing in real estate, particularly here in California, can be a reliable solution for growing your money:

1. You can leverage other people’s money. Unlike many investments, real estate allows you to finance a large purchase with a relatively small upfront amount. Typically, you might put down 10% or 20% of the home’s price and borrow the rest from a bank. Your returns aren’t just based on your initial down payment; they’re based on the full property value. For example, a home worth $500,000 that appreciates by just 5% in a year earns you $25,000 in equity, even though your initial investment might have been just a fraction of that.

2. California real estate historically appreciates about 5% per year. California properties have consistently appreciated in value for decades, averaging around 5% each year. In certain desirable areas, appreciation rates can climb into double digits. This isn’t speculation; it’s backed by real data. Historically, if you buy and hold property in California, the long-term trend is clear: steady growth in value, building your wealth year after year.

3. Tax incentives are specifically designed to reward real estate investors. When you own investment properties, the IRS provides tax breaks through deductions and depreciation. You can deduct mortgage interest, property taxes, insurance, maintenance, and repairs. Depreciation allows you to offset your income and reduce your taxable burden each year. These benefits aren’t loopholes—they’re intentionally created incentives to encourage people to invest in real estate, which helps you keep more of your profits.

If you’re ready to protect your savings from inflation, grow your net worth, and take advantage of strategic investments, real estate might be your next best step. But if you’re still feeling uncertain or need more clarity on how real estate investing actually works, start by learning the basics. Once you understand how it fits your goals, you’ll feel confident taking action.

If you’re unsure about the right approach for your financial future, feel free to call or text me at (626)-388-5518 or email me at fernando.reza@kw.com. I’m here to help you make an informed decision that aligns with your financial goals.