Real Estate Investment: Why Invest On Real Estate?
Posted on February 25, 2009
Filed Under real estate foreclosure investment |
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.
Mario Churchill
http://www.articlesbase.com/real-estate-articles/real-estate-investment-why-invest-on-real-estate-135153.html
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6 Responses to “Real Estate Investment: Why Invest On Real Estate?”
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What is the best real estate investment trust fund to invest in?
I heard that REIT(real estate investment trust funds) are the way to go, I plan to invest in REIT through Fideletity, and was wondereing which company has the best reit funds I can invest in?
REITs have had a great run these last several years. Be aware it may not continue. I do not know the best one. But there are some index funds of REITs. Think about investing in those. They were among the best performing REITs this year.
RWR and VNQ and IYR. Each is up about 38% ytd. Sort of a broad brush approach to picking the best. Just pick them all.
References :
Here is a portfolio of individual REITs that I like:
http://www.top10traders.com/ViewPortfolio.aspx?userID=565
This is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.
Here are this month's best traders:
http://www.top10traders.com/Top10Standings.aspx
Hope this helps.
References :
RWR is a great etf. play but right now is way over-valued….watch it for a while….under 85 is a nibble…..right now the BIG boys hold alot of it…..the stocks(inside.. that mostly make it up)….afraid to move(out) WITHOUT HOLDING EACH OTHERS HANDS…..thats what Goldman pays them for
References :
If you're with Fidelity already, why not just go to a Fidelity mutual fund in the Real Estate sector? I have had great gains…23% per year for the last three… with FRESX…. and now I'm going to put some into their "international real estate" fund.
If you don't like the fund idea, I have also held Capital Trust (CT) check out their performance….I'm happy with them…solid, stable
Good luck.
References :
I would not get a reit until at least March (let the feds decide for you on their interest rates). There should be a glut of foreclousers coming this year thanks to the AMR's that were spit out faster than Paris H does her shopping.
Now sometime this year there is an ETF international REIT which I would take a LONG close look at.
References :