Real Estate Investment: Why Invest On Real Estate?

By: Mario Churchill

It's all about money. And if there are other things included, they will be found somewhere in between.

Not that we are trying to be too materialistic here but lets face it, we all need some security that would run down through the years. And that's exactly what a real estate investment is.

Unquestionably, the benefits that real estate investment could provide are far many than people would have first thought. And while we don't all have initial access on investing in real estate, working on how to invest on one is a good option when trying to save and earn money in return. If you are more forward looking and want to see a more stable income, you should be investing your cash on real state.

Your house for example, would not forever remain as your house if you choose to have it rented or sold one day. Not only would this incur great sums of money, it would also help you become more secured when you need to produce cash in the future. And the vacant land you have bought today, especially when it lies in strategic points, could increase in value in the nearest future.

We will offer you the primary advantages of real estate investment. But remember that it's not all about the pros, it could also offer disadvantages that may or may not fit people of all sorts. But who knows, maybe real estate investment is for you.

Pros
You have the leverage
This seems to be the best feature real estate investment has got in store for you. Look at this scenario-When you are investing in the stock market, your $150 000 would mean a cash out of $150 000. However, with real estate investment, this could only take in the form of down payment of 5%, 10% or 20% or if you are lucky enough, you can get a duplex, a land property, or a house for zerodown. Now, the appreciation and the depreciation will lie on the actual value of the real estate but in case of loss or failure driven by unforeseen circumstances, your loss would only incur the actual down you have invested.

The loss you have is also your gain
When talking about taxes, real investment offers some of the best possibilities of deduction. With real estate investment, you can remove as much as $25, 000 while in portfolio investments, you can only deduct as much as $3000 per annum. To know more on this, it is best that you consult a tax strategist who could help supply you with more comprehensive details.

Cons
It is not your get-rich-quick type of investment
If you are looking for becoming a millionaire overnight, this option is not the right one for you. It is a waiting game and it takes patience and perfect timing to come out with the best possible return with what you have invested. However, with a small exposure to risks, your initial investments could accelerate at a great speed within 7 to 15 years.

No accuracy of earnings determined
Since the return of real estate investment could not be exactly counted and computed when not seen at its greater scale of details, you cannot estimate the real value of the property. This only affects the determination of the yield though. But it would come pretty easy when you want to know exactly where you are standing. Merely look at you're your statement and you will likely know your earning, just like in the stock market.

Real Estate
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