Wednesday, January 22nd, 2020

13 Advantages of investing in Real Estates over other investments


Advantages of investing in Real Estates over other investments:

Basic Principles:

Principle 1:

Maximize Your Knowledge Position before Negotiating Specific Terms

Principle 2:

Don’t Set Your Initial Demands Too Near Your Final Objective, and Probe for the Bottom Line


Some of the Advantages to Purchasing Investment Real Estate:

1. Real Estate is a tangible asset.

Every individual can feel, touch, see and pointed to sense “that’s mind”. It is Real.

2. Real Estate is a unique asset.

Every real estate investment is one of an exceptional kind.

3. Passive Loss Rules.

The real estate investment can create a passive loss; even it makes a positive cash flow. Think it just like a paper loss, which can offset ordinary income and lower the taxes.

4. Safety lies in the Fact:

Real estate investment is a good investment. To purchase real estate properly, it is one of the safer investments in the earth. The safety lies in the fact that our population continues growing and obviously these people will need a place to live. It is also nice to note that the market rate of real estate has been increasing over time as well. While there are occasional downswings and decreases, this is not the norm.

5. Rate of Inflation:

Investing in real estate is so good is because real estate is affected by the rate of inflation. In recent years, inflation appears to have leveled off but the trend has always been that inflation increases. This trend will continue forcing real estate prices even higher and thus bumping up the price of your properties.

6. Investment may appreciate over time.

Real Estate had gone up on increasing the rate for every year.

7. Investment may provide a monthly cash flow.

Many investments will provide a monthly income that can use to fund more investments.

8. Investment can grow equity.

Every payment you make on a mortgage decreases your principal balance, which means when you sell you will be getting that money back in equity

9. Investments when sold may be tax deferred.

Real Estate Investment can play a roll to gain a new investment and defer the investor’s tax!

10. Better Opportunities and Price:

Investors with limited funds are usually faced with limited investment opportunities. The more funds you have at your disposal, the greater the selection and range of investment opportunities available. In the case of land, a greater funding capability permits the purchase of larger parcels at lower prices and provides the opportunity to increase the value through subdivision.

11. The Power of Leverage is a huge advantage with real estate.

By using a relatively small portion of cash you can readily acquire all kinds of investment real estate with leverage – bank or owner financing. This can multiple your return dramatically

12. Find a bargain

Bargain real estate is being all around us if we just begin to look.

13. Rehabbing Techniques

New and improved real estate rehabbing techniques to develop a high-profit, low-overhead business. “Buy It, Fix It, Sell It. Profit!”

Greatest advantages of investing in Real Estates over other investments:

  • After agriculture, the real estate sector is the second largest employment generator in our country.
  • Real estate market is poised for tremendous growth potential with a wave of development and investment into these “exciting” assets.
  • The power you are given to leverage your money and investment. This is one case in which appreciation works in your favor. When you rent out a property you make it even more valuable because the monthly mortgage payment is being paid by the renter. This means that someone else is paying for your equity growth in your property.
  • Investing in real Estate is good and more secure rather than investing in stock exchange, gold and other business. Next investing in Stock Exchange marketing is not effective because it has rise and falls in the stock exchange market.
  • Real estate offers tax advantages that are not possible with stock investments. For example, the IRS allows you to depreciate the property (even though it is gaining in value) and offset the income from rental. If you are an active investor you can establish a real estate business and gain even more tax advantages and offset losses against your ordinary income. Our tax laws favor real estate investment and business investment. The laws give little or no tax advantage to stock investors and employees.
  • Another great advantage comes from knowing a few advanced real estate techniques. Did you know that you could actually finance the majority of your purchases through other people’s money? This is just one of the creative ways that in real estate you can acquire property by using little or no out of pocket money.
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