Advantages Of Investing In Real Estate

By Marci Glover


Man has so many needs in order to survive. He has to eat, not just any food, but nutritious ones. He has to have clothes. He can not wear not just anything, they have to be appropriate for the occasion and the weather. He also needs to have shelter, a home, where he will feel safe and where he will start a family.

During this financially trying times, people have to exercise extra caution especially when it involves money matters. Most people see home ownership as a bad move, much less investing in cape coral waterfront real estate. They would rather prefer to rent out than to actually buy one. They think that if you have your own home, you will have to spend money on it all the time. They do not want to be bothered by repairs and maintenance, and all expenditures related to housekeeping.

There are those who say that having your own residence is only for those who have lots of money to spend. This is because a house needs furnishing and safekeeping to keep it looking good. Home owners, on the other hand, say renting is impractical because you have to pay a monthly fee yet in the end you can still be kicked out of the place. Being in a rented dwelling also means that you have to abide by certain rules. If you possess your own place, you can do whatever you like.

Whichever it is that is more practical, one can never tell. It varies from people to people. There are some circumstances wherein one cay say renting is better, and there can also be situations wherein owning an abode is the only smart option. But, whatever circumstances you may find yourself in, you can not contest the plain truth that man needs to have a sturdy roof over his head to be able to live safely and comfortably.

It is due to this universal truth that real estate has become quite popular as a filed in which to invest your money in. Whether you buy and sell properties or have yours rented, there is no denying its excellent market value. Real estate, in the actual sense of the word, refers not only to the building. It includes everything that is grown or built on the parcel of land one has bought.

People invest in this field for lots of good reasons. Most use this to leverage their capital. If you use a property for security, the bank will be more agreeable to offer its assistance than if you were to use liquid bonds that may crash and lose value anytime.

This type of investment also guarantees tax free cash flow. Yes, what you earn all goes back to you, without tax deductions from the government. This is due to depreciation and mortgage interest deductions that you incur when you leverage the capital. It can also reduce the tax from your other sources of income if you use the deductions from the real estate property.

One good this about real estate investment is that its value constantly increases. It rises with the growth of communities. Since more and more people are looking for places they can call their own, they are willing to pay as much as long as they like your property. So, the longer you hang on to your investment, the more you can earn.

Finally, it is an excellent retirement plan. Most Americans work their buns off as early as their twenties so that they can have a more financially secured life when they are longer fit to work. If this is one of your end goals, then there is no better option than an investment in real estate.




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