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The Benefits of Owning Real Estate as an Investment:

1. Leverage. With stocks, you put in all your money for a little piece of a company and share all the risk. With a house, you put in very little money to control the entire piece of property and very little risk.

2. Taxes. The government knows that owning a home is a big responsibility (particularly a rental); that's why you get tax incentives. These are basically government bribes to get you to buy and help provide housing for those who don't have it and can't get it otherwise.  Everyone needs a place to live and you can help provide it.  The tax benefits can help boost your net worth. 

No other investment will permit you to put in 5 to 10 percent of the cost of the asset, reap all the appreciation, and pay no capital gains (sale of a personal residence) or depreciate (write off) rental management costs annually? You can live in your home for at least two years, and you don't have to pay capital gains tax on up to $250,000 in appreciation if you're single when you sell.  That figure rises to $500,000 if you're a married couple.  On a rental property you can write off depreciation (a portion of the home's value annually) and deduct expenses from your income tax bill.

3. Control. When you buy stocks, you're contributing your hard earned after tax dollars to a company's performance (good or bad).  With a home, you have control - what you buy, how much you pay, and where you live. You can improve the home's value with repairs and updates. Try comparing that to getting little or no dividend from stocks in decline, or loss of principal.

4. Security. With a home, you're purchasing a secure spot for yourself and your family to live. You choose the neighborhood you want to be in, and the size and style of a home that you makes you feel secure. With a rental property you can manage your own business and control rents, manage cash flows and reap the tax benefits plus keep any profits after the sale.

5. Value Retention. Unlike some stocks, your house always retain value if it is maintained well. Your home should always retain it's value. So don't stress about slight fluctuations in the value of your home in any given year. You'll steadily make it up over time. Housing in most normal markets has lost very little value over the years. Expect to beat inflation by 1 percent to 2 percent each year.  And because of high and growing demand for living space, appreciation in most markets will be steadily increasing pushing your values up.

Summary:
Reality check, you probably lost a greater percentage of your investment on the stock market this past year than if you owned real estate. You lost more on your cars, boats and RV's.  And you can live in your home or rent out investment property.  Additionally, if you had rental property your tenant paid the mortgage, but you got tax benefits plus appreciation.

"Don't wait to buy Real Estate......Buy Real Estate and then wait.......for the returns".

Call me for help in selecting the best properties:  (864) 444-2053. 

 

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Real Estate Agent: Steve Baker - Broker / Agent (Keller Williams Realty)
Steve Baker - Broker / Agent
Greenville, SC
More about me…
Keller Williams Realty

Office Phone: (864) 444-2053
Cell Phone: (864) 444-2053
Email Me
A Buyers Strategy for their next home purchase.


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