Investing? Five Ways To Make Real Estate
Work For You
Shekhter, if you are you ready to invest some money but unsure
which type of investment will give you some control over your
money, you may want to look into the area of real estate? Here are
five reasons this may be a sound direction to build wealth:
- You cannot make more land.
Investing in real estate is more stable and has fewer swings than
putting money in Wall
Street. Real estate is tangible. Buying at a lower price when
the market is soft and holding on to the property until there is a
stronger market, can yield a greater return than most types of
investments. This also is a valuable asset as equity if you want to
invest in other projects. Your real estate investment can be
appreciating while you are using the money to build your
- Real estate can be protected.
Since it is a tangible asset, it can be insured. Homeowners
insurance will make sure your investment is covered if
tragedy strikes. Just be sure you get the type coverage that will
be suitable for the location of the property taking into account
types of weather for the area.
- The real estate market can have
its bubbles but
seems to bounce back relatively quickly and it always bounces back.
Savey buyers with long-range investment goals know this and will
buy soft only to make greats profits when the market bounces back.
Real estate makes a great long-term investment as you can watch
your investment appreciate over time. In a strong market, buy
properties that only need cosmetic upgrades and flip them
- There is nothing better than a
portfolio. Real estate is a solid addition. If you want to
offset risk, having tangible assets can be a safeguard. Some
investors only deal in real estate because of the stability and the
option of insured protection. If the sales market is slow, there is
the option of renting to produce cash flow while letting someone
else pay for the property.
- The hidden gravy is the tax
benefits. Here is a tax write-off list of expenses:
There may be
other costs that can be deducted. Check with your accountant (you
can deduct their charges also)and let them in on your plans. They
can often offer money-saving strategies.
- mortgage interest
- property taxes
- depreciation even while the
property may gain value
- cash flow from investment
- operating expenses and
- marketing and sales
There are few downsides to purchasing real estate as
investment in a soft market or quick upgrades for a fast
flip in a strong market. There are few types of investment that are
tangible and insurable. Do your research, find properties that are
below market value, in reasonable condition, and are going to give
you a good dollar return.