Why should you invest in real estate?
Perhaps you've been bombarded by media promotions urging you to invest in certain financial products and services but it's interesting that they rarely suggest that you invest in real estate. Maybe that's not so surprising since "better investments" will automatically attract the capital with less promotional effort. "Programming" aside, you would probably want to weigh your options and consider some real estate investment factors that can give you more bang for your bucks.
Appreciation on resale: The real estate market is rebounding, prices are rising and "days on market" are declining. The real property future is promising while most other investments are still a "crap shot".
Income potential: Rents are firming up as the rental population booms. Dividends? Hmmm.
Tax benefits: Sure there are some tax-free bonds to be had. But depreciation on investment property means tax deductions without any cash outlay resulting in more cash for you. And with a 1031 exchange you could avoid all the tax on your investment gains.
Improvements can be made to add value to the investment: Try applying a bucket of paint to your Americatrade account.
Long-term financing: You could buy stock on the margin but you won't get a 30-year loan with a 25% down payment. Do the math - real estate means better leverage.
Use the investment: Live in or run your business from your real estate investment. You could even spend a couple of weeks in your investment rental home at the beach - run over there for the weekend to change the light bulbs.
Permanence: I guess there's a chance your building could fall into a huge sink hole but you are not likely to misplace your rental property.
So take another look before you buy that stock. Today's real estate market literally abounds in opportunity.
Bob Calongne, Broker / Attorney
Director, KW Commercial division
Keller Williams Capital Properties
Washington, DC
Bob@CommercialREConnection.com
http://CommercialREConnection.com
