Texas Commercial Real EstateArticle
Re/Max
Phillip Bell
Phone
(830) 816-2660 x113
Fax
(830) 816-2649
Mobile
(210) 415-8483
Email:E-Mail Me
RE/MAX Associates Boerne,
309 Water Street
Boerne, TX 78006
Phillip Bell - Investment Realtor

Ten Advantages to Investing in Real Estate

Ten Advantages to Investing in Real Estate

As real estate professionals, we are often asked why real estate is such a good investment as compared to, say, the stock market, or bonds, or perhaps certificates of deposit. Just what makes real estate so special?

The fact is stock brokers have a vested interest in turning people away from real estate - they sell stocks. The same stocks that have over the last three years cost people their life savings, their retirements, their kids' college education and their sense of security. I have yet to see a real estate investment drop in value by 50% within six weeks.

Here are the Ten Advantages to Purchasing Investment Real Estate:

1. This is a tangible asset.
It is something you can feel, touch and see. You can drive by it every day if you want!

2. This is a unique asset.
As the old saying goes, they don't make land anymore. Your real estate investment is one of a kind!

3. Passive Loss Rules.
Your real estate investment can create a passive loss, even when you are making a positive cash flow. Think of it as a paper loss, which can offset ordinary income and lower your taxes!

4. Your investment may appreciate over time.
In one study of recorded real estate history, real estate had gone up on average 5.5% a year for the last 100 years!

5. Your investment may provide a monthly cash flow.
Many investments will provide a monthly income that you can use to fund more investments.

6. Your investment can grow equity.
Every payment you make on a mortgage decreases your principal balance, which means when you sell you will be getting that money back in equity!

7. Your investments when sold may be tax deferred.
If you follow 1031 exchange rules, you can roll your gain into a new investment and defer your tax!

8. Your investment may become tax free!
How? Imagine that you own a rental for several years and then move into the home yourself. As long as you meet the new IRS guidelines for a principal residence, when you sell this home you may be able have a tax- free gain.

9. The Power of Leverage is a huge advantage with real estate.
By using a relatively small portion of cash you can readily acquire all kinds of investment real estate with leverage - bank or owner financing. This can multiple your return dramatically!

10. You may find a bargain!
Bargain real estate is all around us if we just begin to look! In the Boerne and Kendall County area real estate values are higher than in metro areas. So bargains are not just predicated on price' rather appreciation. Likewise, growth in the Boerne area has made residential property a good investment while the opportunities for commercial, investment and development properties are outstanding.

So' if you are looking for a good place to 'park' your money' consider real estate.

Call me for more information about investment opportunities: Cell: 210-415-8483


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