Real estate investment has traditionally been one of the quickest ways to achieve wealth. This is especially true in the U.S., where individuals have gone from dire straits to lavish lifestyles simply because they were fortunate enough to invest in the right plot of real estate. Yet, becoming wealthy isn’t the only reason to jump at the chance to invest in land. Read on to understand some of the top reasons real estate is still a wise and worthy way to invest your money.

Reason 1:  Real estate sparks cash flow

If you’d like to have a little extra cash to spend each month, investing in real estate is one of the ways to get it. Simply put, real estate investments spark the generation of cash flow. Cash flow is the difference between the money you make on your real estate investment and the money you had to spend to invest in the property. Cash flow is the most attractive type of profit in real estate because it allows you an immediate return on your investment – in the form of readily accessible money.

Reason 2:  Real estate gives you leverage

If you want to invest in stocks or bonds, you need to have the money with which to do it. Most lenders will not supply money to someone who wants to use that money for stock investments. Even if banks allow you a personal loan, it’ll likely be at an interest rate that outpaces any early earnings you get on the stock market.

Real estate, on the other hand, provides you with immense leverage when it comes to banks. Most lenders happily loan money to individuals who want to buy up investment properties because they know your purchase will leave you with a tangible good should you ever default on your loan. Stocks, on the other hand, cannot be seized should a person default on his or her bank loan.

Reason 3:  Real estate provides you with tax benefits

One of the reasons real estate investors in the U.S. have been able to do so well is because the U.S. tax code caters to those who make housing available to others. If you invest in real estate, you are taxed at some of the lowest rates listed in the tax code. On the other hand, it you were to invest in stocks you’d be taxed at some of the highest rates in the tax code. Investing in real estate puts you in an enormously beneficial tax position.

Along with enjoying a low tax rate, real estate provides you with another perk:  tax deductions. All interest payments made on real estate properties are tax deductible, a fact that can save you a substantial amount in taxes. Along with that, real estate investors are also allowed to depreciate their properties along with the contents of those properties, allowing for even further tax advantages.

Reason 4:  Real estate usually grows in value

A well-kept secret regarding real estate investment is that there are always excellent deals to be had, you simply have to know where to look. If you do your homework and purchase real estate in popular areas that are likely to appreciate, your investment could quickly grow at a rate that far outpaces anything in the stock market. Better yet, when you own real estate that rises in value, you are able to grow both your portfolio and your capacity for leverage when it comes to further investments.

Reason 5:  Real estate limits risk exposure

Another reason most lenders are happy to sign away money for real estate investments is because of the lack of risk involved. When banks loan money for investment properties, they acquire very little risk thanks to the near constant growth rate of the real estate market over time (history shows even negative growth rates always eventually flip to the positive). They have the added benefit of knowing that they can easily claim your real estate if you ever default on your loan, thus leaving them with a tangible good that can be resold.

Reason 6:  Real estate offers you peace of mind

The main strength of investing in real estate is the fact that it is a tangible, actual, touchable good. As a real estate investor, you’re actually able to see what you’ve done with your investment money. In contrast, investing in the stock market provides nothing tangible to show for your purchase. An added bonus is that fact that real estate investments tend to have a higher return than stocks. Even though the stock market is decently reliable for producing a long-term return rate of 10%, the real estate market has been known to offer steady returns of as much as 50%. Even a bad year for real estate usually still lands investors a positive return. With comforting knowledge like that, why would anyone not want to invest in real estate?