Building Wealth With Real Estate
Tips for Building Wealth With Real Estate
Real estate offers many benefits that are unavailable with other investment vehicles. Here is a quick summary of some of those benefits:
- Leverage. You don’t have to pay cash for a real estate investment. You can borrow on real estate at lower rates with a longer payback period than with virtually any other investment.
- Tax Benefits. There are many tax benefits associated with real estate ownership. Within limits, you can deduct depreciation on most of your investment each year. You get beneficial tax rates on any capital gains when you sell or you can postpone tax consequences altogether with a variety of techniques
- You can find bargains. If you want to buy 1000 shares of Exxon-Mobil stock you have to pay the market price of about $71,000. If you want to buy an investment house you can find bargains by locating motivated sellers and developing strong negotiating skills. Experienced investors will often tell you that the money is made when you buy.
- Greater control. When you buy stocks you hope that the management makes the right decisions. When you buy real estate you can influence the return. You decide how to set rent levels, make improvements, and when to sell.
These are some of the advantages of real estate investment. There are also disadvantages. If you want a more detailed discussion of both, call Cindy and she will arrange a complimentary consultation.
- Phil Storms
You can read more on personal finance by consulting my blog at www.cashflowgarden.blogspot.com
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