|
The idea of investing in real estate can be daunting. It doesn't matter if you plan to be a single homeowner, a landlord, a developer, or a house flipper. Many people are too afraid to take the chance, and, therefore, miss out on a lot of wonderful investment opportunities. Here are a few of the reasons why you should take the leap. Buying Property Is A Double Investment When you purchase stock in a company, you are counting on your purchase increasing in price as the years go on. That is all it does. When you invest in real estate, not only does your property appreciate in value, but you can also use the space. The average existing home appreciated 5.4 percent from 1968-2009. So a $100,000 home purchased in 1968 would be worth nearly $864,000 today. That alone makes it a good investment. But if you lived in that house during that time, not only were you gaining the increased value every year, but you were not paying rent to live elsewhere. If you rented the property out, you were making the 5.4 percent a year, plus whatever profits were gained from your tenants. Tax Benefits Investing in stock or contributing to your 401k is a solid investment strategy. However, it does not offer all of the benefits that real estate does. When you purchase a property, there are a myriad of tax write offs and deductions available. This is especially true if it is purchased as a rental property. Even minor expenses such as driving to check on the property, installing an alarm system, or buying new light bulbs can be written off. So not only are you increasing the value of your investment with each purchase, but you avoid paying taxes on that same amount. Property Is A Vanishing Commodity "Buy land, they are not making it anymore." This is as true today as it was 100 years when Mark Twain said it. With increasing zoning laws and land use restrictions, it is becoming harder than ever to build new homes or businesses. Every property purchased makes the available market smaller. While we are nowhere near capacity yet, the value of existing properties only increases, and will continue to do so over time. Investing in real estate can be a frightening undertaking. However, if done cautiously and with good advice, it is one of the best investments on the market. It is a finite commodity that will only increase in value. It provides the investor with a number of options for tax benefits. And most importantly of all, it is an investment that not only accrues value, but provides the owner with a place to live or rent as well. No other investment can offer the double value that real estate does. To learn more about their options for South Lyon real estate, residents should visit http://visithphomes.com/stoneleigh/.
Related Articles -
south, lyon, real, estate,
|
