> For the complete documentation index, see [llms.txt](https://avanzo.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://avanzo.gitbook.io/whitepaper/basic-concepts/real-estate-investing-benefits.md).

# Real Estate investing benefits

#### Appreciation

Profits from property-dependent businesses, rental income, and appreciation are the main sources of revenue for real estate investors. With a wise investment, you may make money when it comes time to sell real estate because its value tends to rise over time. Over time, rents also have a tendency to increase, which might increase cash flow.

#### Cash Flow

After paying the mortgage and other operational costs for the property, cash flow is the net profit. The capacity to produce cash flow is a significant advantage of real estate investing. Cash flow frequently gets stronger over time as you pay off your mortgage and increase your equity.

#### Inflation Hedge

Real estate's capacity to hedge against inflation results from the correlation between GDP growth and real estate demand that is favorable. Rents rise when economies grow due to a greater demand for real estate. Higher capital values are the result of this. Real estate thus has a tendency to keep capital's purchasing power intact by transferring some of the inflationary pressure onto renters and by integrating some of it through capital appreciation.