5 Reasons Why Real Estate Offers Potential for Wealth Growth and Security

Delving into the realm of real estate goes beyond the ability to purchase a property and earn through rental income. Investing in real estate can be a way for you to enhance your portfolio and safeguard the legacy you’ve worked so hard to build. Let’s go deeper into the conventional notions about real estate, which could reshape or strengthen your understanding of its role in preserving and growing your wealth. 

Real estate is not limited to commercial and residential properties

While it’s true that the most popular types of real estate investments come in the form of commercial and residential properties, savvy investors know that they are not the only ones worth considering. There are other real estate sectors to note such as (1) industrial, which may be any property used for manufacturing, production, distribution, logistics, and storage; (2) communication infrastructures, where various broadcasting and telecommunication services are operated such as antennae sites used by big telco companies like Verizon, T-Mobile, and AT&T; (3) data centers, which house critical network and cloud-based services to technology giants like Amazon, Microsoft, IBM, and Apple; and (4) healthcare spaces, which are specialized facilities with increasing demand that makes for sustained revenues. 

Investing in real estate does not always mean physically buying it

Did you know that purchasing land or property is just one way to invest in real estate? You can invest via a brokerage account in the stock market or via timesharing where one can buy a share of the property and earn rental income from it. The latter is perfect for those who, aside from earning, are also looking for an exclusive use of the property for a period of time–whether for vacation or special events. While this type of investment does not require the cost of full ownership, it does include annual maintenance fees and challenges in reselling or renting the share. 

Real estate investment trusts (REITs), on the other hand, offer access to a wider array of income-generating properties without the burdens of direct ownership such as significant capital and transaction costs. REITs require relatively modest investment while providing access to a diversified real estate portfolio without a limited time period, making them a powerful force in the world of investments. Globally, REIT market capitalization has been growing at 17% annually.  

A real estate investment can be linked to an insurance policy and offer protection benefits beyond just wealth growth

AXA has introduced a gateway to prime global real estate investment through its REIT Fund, and is made available via Asset Master, AXA’s unit-linked single-pay insurance plan. It provides a new way for individuals to access and benefit from lucrative markets, especially in building wealth and one’s financial legacy, while having life insurance coverage.  

An Asset Master policy that is linked with the AXA Global REIT and Property Income Fund allows one to invest in diverse real estate sectors globally that include residential and retail, communication infrastructure, data centers, healthcare, and industrial properties. And because the fund is linked to an insurance policy, one is guaranteed at least 125% of his investment as life insurance coverage.  

You can earn passive income through REIT Funds

The beauty of the AXA Global REIT and Property Income Fund lies in its ability to provide ownership of such coveted prime real estate investments in the world. It positions investors at the forefront of profitable property opportunities and passive income-generating assets. 

It also aims to provide monthly cashflows of up to 5% per annum, making it a smart option for those seeking passive income streams. 

The AXA Global REIT and Property Income Fund is anchored on the largest global REIT companies enabling market giants, such as Amazon, Microsoft, Walmart, and AT&T. This fund not only aims to provide regular rental income but also offers great exposure, underpinning the potential for long-term growth in these global players. 

Estate planning is a critical consideration in real estate investment. 

A home, land, and other real assets are some of the most common forms of inheritance, but while they appreciate in value, their liquidity and the estate tax that comes with it can be burdensome. So it is crucial to properly plan for the transfer of one’s estate to his or her heirs in order to better preserve wealth and transfer it seamlessly. 

Getting a plan that combines insurance and investment in real estate such as the Asset Master with the AXA Global REIT and Property Income Fund is a smart move as it not only secures the present but also fortifies the legacy for heirs. The proceeds from the insurance payout are tax-exempt (if the designated beneficiaries are irrevocable or if the beneficiaries were not changed through the tenure of the insurance policy), thus keeping the wealth intact for its immediate transfer. The proceeds can also be used to pay estate taxes, so there won’t be a need to sell other assets to cover tax liabilities. 

Investing in real estate with the goal of protecting and growing your legacy involves strategic planning and thoughtful execution. By keeping in mind these facts in your real estate investment plans, you can take a step towards your goal. Explore the possibilities offered by Asset Master and the AXA Global REIT and Property Income Fund to help you with your wealth-building strategy. The AXA Global REIT and Property Income Fund caters to investors with a high-risk tolerance, eager to harness substantial returns. Visit AXA Philippines’ website or talk to a financial advisor today.