SEPTEMBER 2, 2021    |   5 min read

5 Benefits of Real Estate for Healthcare Professionals

Is Real Estate Investment really the best option for healthcare professionals? Why this and not other investment options? Let’s take a look at the benefits. 

Physicians and medical professionals are certainly good at many things, but what is our real strength? If you ask me, I think it’s working really hard and our commitment to our patients. Our commitment to other people.
After you land a dream job that has taken years of schooling to obtain, it is disappointing to learn about the harsh realities of being an employee. One would think that such a respected profession would come with security and a healthy, steady income, but the medical field certainly isn’t what it used to be.
Just like I learned from seeing others around me when quarantine started. No one is really safe, and even the most respected professionals can be easily furloughed. Practicing medicine on our terms and having other sources of income became a necessity. We have learned since we were students to influence our own destiny. Why should we stop now?

The fact is, true wealth-building comes from monthly cash flow and increasing equity. This is why real estate investing allows busy working professionals to gain back a much-needed sense of security. But why this and not other investment options?

Let’s take a look at the benefits.

 

1. Cash Flow.

When you invest in real estate, your “cash flow” is the net amount of money that piles up in your bank account each month. After your initial investment and work, the cash will keep coming every month. In other words, you have set up a passive income source that doesn’t require the sacrifice of your precious time.

That so dearly earned income, when appropriately deployed into stable assets like real estate, will grow without any more of your time. As this passive income and equity grow over the length of your medical career, you will find yourself in a position to have something to pass down to your family.

2. Depreciation.

Though the term depreciation implies loss, in real estate investing it is actually a positive. In the end, it implies that your income increases. Everything in a house can depreciate but land cannot. People will always need a place to live, and cities are getting bigger and bigger. Land will only increase in value.

Let’s take a closer look. The value of a real estate investment such as a multi-family house, for example, can appreciate in value over time, thus creating more equity for the owner, while the value of the building depreciates, thus reducing its tax basis. This, in turn, reduces the amount of taxes paid on the assets that are appreciating in value simultaneously. In other words, you’ll be receiving tax benefits.

3. Appreciation.

Land is a valuable asset. The term appreciation refers to the increase in the value of a property over time. You don’t have to do anything for its price to go up and that’s why this is called passive income. But it doesn’t stop here. You can actually raise its price if you do something. We’re talking about home improvements. For more details, you may check our article about how to increase your home value.

4. Debt Paydown.

Obviously this is still an investment which implies there will be debt. I have good news for you. Other people will pay this debt as your mortgage is paid by your tenants every month.

Do you want even more? How about living rent free. Alternatives like house hacking allow you to live in one of your units while the rent paid by your tenants makes it so you don’t have to pay a single cent.

5. Become a Better Medical Professional.

Personally, I think the greatest benefit of real estate investment is that it makes you a better doctor or healthcare professional. Financial independence makes working feel more like a choice. It feels less like the only means to an end and more like part of a bigger picture. It makes for more gratitude.

While you become a better professional, you also improve your life in general. This happens when you get back some time to invest in other important areas of your personal life.

You can only enjoy these benefits when you stop the cycle of only exchanging time for money. Time is your most valuable asset after all, and you’ve already sacrificed too much of it.

KEY TAKEAWAYS

  • You can set up a passive income or cash flow that grows without investing time each month.
  • Enjoy tax benefits thanks to the depreciation.
  • Your assets will increase their value over time, this is called appreciation.
  • Your tenants will be paying your mortgage.
  • Work on your own terms and become a better professional.

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