Sunday, December 10, 2006
You could find many reasons why investing in real estate is more safe and more profitable. We would further discuses few factors in this article.
- It Grows instead of dwindling
First thing to notice in this list of real estate investing is that if look at real estate market as a perfect timeline compared to stock market then you would notice that real estate has a growth line with few major fluctuations. On the other hand, the stock market actually has high points and valleys, which ranges form quick highs to sudden drops. It is quite hard to look at the timelines of other types of investing, that is currency investing, mutual funds, buying gold and silver and much more, but one thing is very clear: today no market is as safe and profitable as investing in real estate market.
- Government Tax Breaks
The United States government had setup few tax breaks for real estate investors including the very popular 1031 exchange. Textbook definition is mentioned below.
"A 1031 exchange or Like kind exchange is defined by section 1031 of the Internal Revenue Code. The code specifies that if an asset, normally some form of real estate such as land or a building is sold and the proceeds of the sale are then re-invested in a like kind of an asset then no gain or loss is recognized, allowing the deferment of capital gains taxes."
In a simple explanation it could be said that as long as you reinvest your money made in real estate investment into another investment, you do not have to pay tax on the said profit. You will not get this much freedom with tax in any other form of investing.
- Other People's Money
Why would you invest your money whey someone else's money is ready? One rule of real estate investing is: "If any one is willing to flip the bill- allow them". Banks are willing to give out loan facility to purchase houses because it is another form of investing, they do have something solid that they could keep if you don't pay up. If you notice bank are normally not very much willing to give loans for stocks or gold investing because the stock you invested in may be worth nothing by the time you willing to sell and bank has nothing in hand. Real estate is almost always going to be worth something, normally values increases every year.
Today real estate investment market is booming like never before in history, and those investing is been rewarded more than ever before. If you require more information on this incredible market, feel free to contact us.
posted by real estate @ 10:53 PM
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