Why Real Estate is a Better Investment Than Stocks
By Suzy Rodoni, Real Estate Eight Three One
A recent article from FortuneBuilders, a premier real estate investment education company, said, “Given that the U.S. market as a whole is just getting warmed up for a new boom, virtually every property sector is set to take off. Analysts are predicting great real estate investing opportunities from coast to coast.” If you are debating about how to invest your money in 2014, real estate is definitely something to consider. Investing in real estate is largely considered, in general, to be safer than investing than stocks. Below are some of the benefits of investing in real estate:
You have the ability to leverage your purchase: When buying real estate, you have the ability to purchase a $500,000 investment with a 20% down payment. That allows you to control a $500,000 property with $100,000 while buying $100,000 of stock requires you to invest $100,000.
You can write off depreciation for investment real estate: One major benefit to investment property owners comes in the form of depreciation write-off. The IRS allows owners to take a “paper” or tax loss every year based on the loss of value due to physical deterioration. This allows the property owner to reduce their taxable income by thousands of dollars each year. In most cases, your asset is increasing in value as you write off those losses.
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