Why Invest in Real Estate ?
Historically, real estate has produced more wealth than any other single industry. Indeed Fortune magazine reported that 97% of all millionaires in the U.S.achieved their goals through property investing. For some reason many people are somewhat apprehensive and reluctant to invest in property.Here are 10 reasons to change their minds.
1) The fundamental concepts of real estate investing are relatively straightforward and easy to understand. Unlike stocks and bonds property is "real" and tangible. 2) Property tends to hold its value remarkably well, often growing in value at a pace faster than inflation. 3) It is capable of producing phenomenal profits if bought and sold correctly. 4) Property investing is also a great cash flow vehicle. Several properties can easily provide a steady stream of income that could potentially replace dependency on a monthly paycheck. 5) Property investment has excellent residual income potential: simply do the work once and continue to get paid many months and even years later. 6) Property investing in the form of rentals is also a scalable vehicle. Rent one property, achieve one income stream. Rent two properties achieve two income streams. Rent many properties achieve multiple income streams! 7) Investing in paper ie mortgages secured by real estate can provide a management and maintenance free investment for those who have accumulated cash and desire a less hands on approach. 8) Real estate has a preferential tax treatment allowing for valuable write-offs, and tax advantages for profits from capital gains on sale of the property. 9) Few investment opportunities are able to match the phenomenal leverage offered by property investing. Even a traditional mortgage
has a leverge ratio of 9 to 1. For example a $100,000 property can be acquired for $10,000. With a little experience and some creativity the down payment can even be as low as zero. 10) Upon completion of a project the property can be quickly sold or farmed out to a property management company thus freeing the investor for the next project !
Real estate investing is not a get rich quick scheme. It requires work sometimes a great deal of hard work but with research and an effective plan the rewards far outweigh the risk. In my experience, real estate is the only business that has provided consistent rewards in terms of net worth,equity and passive income. It offers exceptional returns and is one of the few businesses that provides a realistic path towards financial freedom.
1) The fundamental concepts of real estate investing are relatively straightforward and easy to understand. Unlike stocks and bonds property is "real" and tangible. 2) Property tends to hold its value remarkably well, often growing in value at a pace faster than inflation. 3) It is capable of producing phenomenal profits if bought and sold correctly. 4) Property investing is also a great cash flow vehicle. Several properties can easily provide a steady stream of income that could potentially replace dependency on a monthly paycheck. 5) Property investment has excellent residual income potential: simply do the work once and continue to get paid many months and even years later. 6) Property investing in the form of rentals is also a scalable vehicle. Rent one property, achieve one income stream. Rent two properties achieve two income streams. Rent many properties achieve multiple income streams! 7) Investing in paper ie mortgages secured by real estate can provide a management and maintenance free investment for those who have accumulated cash and desire a less hands on approach. 8) Real estate has a preferential tax treatment allowing for valuable write-offs, and tax advantages for profits from capital gains on sale of the property. 9) Few investment opportunities are able to match the phenomenal leverage offered by property investing. Even a traditional mortgage
has a leverge ratio of 9 to 1. For example a $100,000 property can be acquired for $10,000. With a little experience and some creativity the down payment can even be as low as zero. 10) Upon completion of a project the property can be quickly sold or farmed out to a property management company thus freeing the investor for the next project !
Real estate investing is not a get rich quick scheme. It requires work sometimes a great deal of hard work but with research and an effective plan the rewards far outweigh the risk. In my experience, real estate is the only business that has provided consistent rewards in terms of net worth,equity and passive income. It offers exceptional returns and is one of the few businesses that provides a realistic path towards financial freedom.
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Source: http://www.articlealley.com/article_114536_33.html
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