The definition of real estate investment can be overwhelming. If you are planning to be a single homeowner, a landlord, a developer, or a house flipper, it doesn’t matter. Many individuals are too scared to take the opportunity, and thus lose out on a lot of wonderful opportunities for investment. great post to read Here are a couple of the reasons why the plunge should be made.
Land acquisitions are double investments
When you buy stock in a company, as the years go by, you count on your purchase rising in price. That’s everything that it does. Not only does your property appreciate in value when you invest in real estate, but you can also use the space. The average existing home appreciated 5.4 percent from 1968-2009. So, a home bought in 1968 for $100,000 will be worth almost $864,000 today. That alone makes the investment a good one. But if during the time you lived in that home, not only did you get the increased value every year but you didn’t pay rent to move elsewhere. When you leased out the house, you made 5.4 percent a year, plus whatever income your tenants got.
It is a solid savings plan to invest in inventory or contribute to your 401k. It does not offer any of the advantages that real estate does, however. There are a number of tax write-offs and deductions available when you buy a house. If it is bought as a rental property, this is particularly true. Also, small expenditures may be written off such as driving to inspect the house, installing an alarm system, or purchasing new light bulbs. So, with each purchase, you not only increase the value of your investment, but you avoid paying taxes on the same number.