Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Why Real Estate Investment? > NetSparsh - Viral Content you Love & Share

Why Real Estate Investment?

Why should you invest in real estate? Well, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today. In fact, if you pay attention to recent press you will have seen numerous reports about the real estate investment craze that seems to be sweeping the Nation.

When done carefully and intelligently, real estate can yield fantastic benefits that can not be achieved through any other type of investment. Here are just a few examples of why real estate investing can be such a powerful wealth generator.

1. Real Estate Markets Are Slow to React - Although real estate, like everything else, has ups and downs, it is generally a lot slower to react than the stock market. For example, you won't get up in the morning and discover that your real estate investment is worth ten or twenty percent less than it was yesterday.

2. Leverage. You can borrow money to buy real estate, whereas, generally you can not borrow money to buy stocks. You can control a large dollar value of real estate with a small amount of your own money by using loans and mortgages. The stock market, by law, limits the amount of leverage (margin) you can use to buy stock. There are no such limits with real estate.

3. You Can Purchase Real Estate For Less Than Its Market Value. In many cases you can purchase a property for as low as 60 to 70 percent of the market value. When buying stocks, you may be able to find a stock that is considered "under valued" but generally it's tough to do that on a regular and consistent basis.

4. Real Estate Offers A Tremendous Amount Of Tax Advantages Through Depreciation. Real estate basically has two values, the land and the building(s) on the land. For example, if a property is valued at $250,000 and the assessed value of the land is $75,000, the building would be worth $175,000.

The government allows real estate investors to depreciate the value of the building in equal parts over its "useful life" which is defined as 27.5 years. So for example, based on the $175,000 building value above, the annual depreciation value would be $6,363.63 ($175,000 divided by 27.5). This means that for tax purposes, the investor would be able to reduce his/her annual income by $6,363.63!

Many people find the notion of depreciation to be confusing since it's not really a loss of money. I recommend you check with a qualified tax professional for more details and how this can benefit you.

5. Real Estate Markets Are Insulated Local Markets. For instance, when the stock market falls, it takes down just about everybody and everything involved with it. When home values drop in one city such as New York, generally it does not affect property values in other cities like Boston or Chicago. To protect yourself, you can have a "geographically diversified" portfolio of real estate investments to hedge against these types events.

6. You The Investor Can Control The Value. Another aspect of real estate investment is that unlike any other investment, this investment is controlled by the investor. For example, as an investor, you can increase the value of your investment property by making some modifications to the property such as adding a garage or replacing the carpet, etc. With stocks or any other investment, the investor can't do anything to increase the value of the investment.

7. The Efficient Market Hypothesis (EMH). When a market has prices that always "fully reflect" available information, it is called "efficient". The stock market for example is considered by most to be an efficient market. When you call your broker to purchase or sell a stock, you can be sure of one thing ? the price you bought or sold the stock for was indeed the "correct" price for that stock on that day and at that time. Why? Because the existing price for the stock will already incorporate and reflect all relevant available information about the company such as earnings, and other metrics.

With real estate, the market is very inefficient. Unlike the stock market, with real estate, the "correct" price discovery mechanism is left to each buyer and seller to figure out on their own. There is the almost always uncertainty as to whether the price offered by the seller is too high or too low. Moreover, there is typically little to no help available from analysts and research agencies (like when dealing with stocks) in this respect. This inefficiency is the very reason why real estate offers such a great investment opportunity to be smart and win! But it requires experience and a sharp eye for good deals and great negotiation skill. This expertise can be developed.

If done correctly, real estate is probably one of the smartest investments you could ever make. Hopefully this short rambling has provided you with a fresh perspective of the many benefits of real estate investing. So be smart, continue to learn and above all don't wait for some magic moment, just get started.

To Your Success!

Rik Foote

Rik Foote is the President & CEO of The Dorian Group, Inc. Dorian is a software company that develops affordable software applications designed to help beginners get off to a realistic and practical start as real estate investors. To learn more about Dorian's products and services visit http://www.reiscouts.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Forbes

Six Skills Real Estate Investors And Developers Need To Develop
Forbes
Being a successful real estate investor or developer requires the unique ability to see an opportunity where others do not. Looking at trends in other successful markets and recognizing those trends elsewhere are key factors in identifying opportunities.


Clarke County starting real estate reassessment process
The Winchester Star
The county has hired Wampler-Eanes Appraisal Group Ltd. of Daleville to conduct the 2020 general reassessment of real estate values. A team of appraisers from the firm will inspect all of the roughly 9,200 parcels in the county, including those in ...


Sacramento Bee

Treasury makes real estate a winner tax law's 'opportunity zones'
Washington Examiner
The Trump administration released the first draft rules for an ambitious plan to provide tax breaks for investment in economically disadvantaged areas labeled “opportunity zones'” on Friday, and real estate appeared to be the big winner. “We want all ...
Opportunity Zones Frequently Asked Questions | Internal Revenue Service - IRS.govIRS.gov
View Interactive Map - ArcGIS OnlineArcGIS Online
REG-115420-18 - IRS.govIRS.gov
Urban Institute
all 156 news articles »

36 'Safer' Dividend Real Estate Equities With Cash Returns In ...
Seeking Alpha
WallStars all show positive target price upsides. Top ten net gain safer Real Estate WallStars, CHMI; GMRE; MGP; WPTIF; APLE; DX; GEO; SIR; IRS; IRCP ...

and more »

Naples Daily News

Real estate briefs
Naples Daily News
Free real estate seminar. Naples' top real estate professionals are holding a public talk to help homebuyers and sellers avoid making common but harmful mistakes. According to local Realtor Jim York, who will be one of the professionals at the seminar ...


Wall Street Journal

The Bullies of Real Estate
Wall Street Journal
“Bullying is rampant among real-estate agents, but you see less of it among the top-performing agents. The most common form of bullying here is a passive-aggressive running of the clock, which usually happens when buyers and sellers are negotiating ...


Entrepreneur

Blockchain: The Game Changer of Real Estate Sector
Entrepreneur
If blockchain is used in real estate, it will potentially change the way builders, realtors do the business. A fresh way for contracts – Smart contracts can be used which will not only enable real estate contracts, property records to be completed but ...


Real Estate Happenings
Charleston Post Courier
WHAT: This inaugural golf tournament fundraiser is sponsored by Berkshire Hathaway HomeServices Southern Coast Real Estate, with 100 percent of the proceeds going to nonprofit The Sunshine Kids Foundation (www.sunshinekids.org) providing group ...


The tiny critters that are infesting real estate
Inman.com
Bedbugs might seem like a personal problem rather than a real estate issue, but don't let your assumptions keep you from protecting yourself and your clients from what could turn into a litigious situation. Here's what every real estate agent should ...


ThinkProgress

Ivanka Trump exaggerated, outright lied about real estate values for years
ThinkProgress
According to Jack Studnicky, lead real estate agent who was “deeply involved” with the project at hand (the Ocean Club) and, according to ProPublic and WNYC, “generally praised the Trumps,” said that, as far as he knew, Ivanka Trump hadn't sold any ...

Google News

Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less

Demanding consumers"Internet buyers tend to be better informed on market... Read More

Credit Help: Buying Real Estate -- Not the Same as Buying Cars

Credit for Buying Real Estate is Different than Credit for... Read More

How Professional Property Investors Interpret and Use Capital Growth Statistics

Understanding and using yearly price growth statistics in an area... Read More

Fixing Houses: Using Psychology for Profits

Real estate investors who specialize in fixing houses for profit... Read More

How Come No One Told Us About This When We Were Buying a Home?

Development, it's bound to happen.Simply because there is a large... Read More

Look Past the Bottom Line for a Propertys Potential

It's unfortunate that many real estate investors tend to look... Read More

Are Signs Important?

Signage, though quite fundamental in nature, plays an important role... Read More

Real Estate Investing Works In Your Area Too!

I hope you had a spectacular weekend!Things have been going... Read More

Secrets of Making Money from Real Estate - Part 4

Analyzing and finding the right property deals:Firstly read my other... Read More

A Powerful Suggested Technique for YOUR Home & Property Search

A Powerful Suggested Technique for YOUR Home & Property Search... Read More

Selling Your Home Quickly, Even if You Have No Money For Repairs

Do you need to sell your home quickly? If so,... Read More

Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs

There's no question about it: Buying a first home is... Read More

Dubai or not to Buy? A Short Assessment of the Dubai Property Market

Never has there been such an ambitious and creative drive... Read More

Real Estate Disputes And Partition

What if two people pooled their resources and began investing... Read More

Selling Your Home ? What Can Go Wrong With Pricing and Loans

So, you're selling your home (house, townhouse, condo, apartment, land,... Read More

Achieving Positive Cash Flow from Your Real Estate Investments

Even if you're counting on rising property values to eventually... Read More

San Diego Real Estate, Million Dollar Homes

San Diego county has always been known for its Luxury... Read More

Before You Buy A House ? Top 10 Tips

There are serveral things you need to think about and... Read More

Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business?

These real questions on buying undeveloped land are answered by... Read More

Secrets of Making Money from Real Estate - Part 3

Great, now how do I actually INVEST in real estate?Investing... Read More

Staging Homes for Top-Dollar Sales

Wouldn't it be nice to have Roger Hazard's design team... Read More

Real Estate Investing ? The First House Purchase

Real estate investing usually begins with the purchase of a... Read More

Real Estate Website Marketing - 5 Steps to Crushing Your Competition and Doubling Your Business

Getting your real estate website more traffic is easy if... Read More

Cutting Edge Real Estate, Is the Bubble Ready To Burst?

Of course, this is the big question in real estate... Read More

Dont Buy Ugly Houses!

Ugly houses can be great investments, but we don't buy... Read More