THE DEBATE OVER INVESTING IN REAL ESTATE OR THE STOCK MARKET HAS LONG BEEN FOUGHT. BOTH STOCK MARKET AND REAL ESTATE INVESTMENTS HAVE THEIR ADVANTAGES. THE TRUTH IS PROBABLY ONE OF MODERATION AND DIVERSIFYING TO SPREAD THE RISK. THE FOLLOWING ARE REASONS TO BE INVOLVED IN REAL ESTATE INVESTING.
CONTROL YOUR INVESTMENT
When you buy real estate you are your own CEO. You make all of the decisions. You have the control. If you want to raise the rent, or make improvements, or cut costs you are in total control. You may still be at the mercy of market/economic circumstances, but you have the ability to make your own decisions and determine the outcome of your situation.
LEVERAGE WITH OTHER PEOPLES MONEY
The ability to purchase a $200,000 investment with very little money upfront makes investing in Real Estate very attractive. In a rising market the returns on your money can be very sizeable. Leveraging also gives you the ability to invest in multiple properties.
When you invest in Real Estate you are acquiring a physical piece of property. Not only is it something that you can see and touch, but that is something a potential buyer can see and touch. When investing in stocks you no longer receive even a piece of paper, only a number or symbol represents your investment.
You will need to contact your accountant to analyze your current tax situation and information on Real Estate tax, but investing in Real Estate offers many tax benefits. All expenses associated with managing and maintaining/improving your investment are tax deductible. Interest from your primary residence is tax deductible and if you have lived in your residence 2 out of the last 5 years your profits from the sell may be tax free.
EASIER TO QUANTIFY AND ANALYZE
Investing in Real Estate can be very risky. Much of that risk can be lessened or removed by proper market research. Working with a Real Estate Agent can give you all of the data you need to know if you are making a sound investment. Not only are you concerned with market trends and the future value of your Real Estate investment, but what mortgage costs are compared to rental rates.