What can result from successful real estate investment?

Higher capital gains are typically a direct result of successful real estate investment. When an investor successfully identifies and purchases properties that appreciate over time or successfully manages improvements that increase property value, the profits realized from selling these properties will often reflect in the form of capital gains. This appreciation occurs due to factors such as increased demand for properties in a certain area, economic development, or improvements made to the property itself.

Moreover, capital gains are considered one of the primary benefits of investing in real estate, as they represent the wealth generated through the appreciation of the asset over time, contributing positively to the investor's overall financial portfolio. This contrasts with other aspects such as immediate cash flow issues, which typically arise from poor management or market conditions, and increased tax liabilities, which can be a consequence of gains but are not a result of successful investing per se. Likewise, lack of market knowledge can hinder investments rather than result from success in this field.