 |
Blair Lavagna, REALTOR® Why Invest In Real Estate? |
||||||||||||||||
| Home Current Listings Buyers Investors Asset Managers Contact Blair
|
There are no perfect investment avenues and real estate investment is no exception. For each advantage there is for tying your money up in investment property, there is at least one disadvantage. It is important that you go into any venture with your eyes wide open and with your vision not clouded by those who would make you believe that it is the easy way to riches. It may be a great way of increasing your net worth, but it is not necessarily quick and or easy!
Real Estate generally requires more "hands on" involvement than other investment
options. Maintenance and repairs take time, money or both. (And always seem to take
more of both than planned!) Your cash is tied up in "bricks and mortar"
and is not immediately accessible. However, if these are hurdles you can get over,
then read on and consider the advantages. Long Term In the long term, historically Real Estate property has shown a consistent growth in value, even when some other investment choices were less stable. If there is an increase in value and you are paying down your mortgage balance, its pretty simple: You increase your equity in the property and add to your net worth. The nice thing about it, if you have purchased the property right and maintained it properly, your tenants, in effect, make your payments for you! In addition, there may be tax advantages available to you when you deal in a long term Real Estate Investment. Although there are definite limits to these potential advantages, they can be substantial. Consult a tax or legal professional to see how your situation would be affected. Short Term In the short term, Real Estate makes a
great investment simply because the numbers are so large. It is not like buying a $200
antique and reselling it for $250. Yes, the return percentage will be high, but you still
only made $50. With Real Estate, a decent rate of return can mean big profit dollars.
|
