Top 10 Reasons - Benefits of Investment Property over Stocks:

•1.      Leverage - mortgage allows to by more property for the money

•2.      Cash Flow - money left over after expenses and loan payments

•3.      Principal Reduction - tenants pay down your mortgage

•4.      Income tax savings - due to IRS rules, depreciation allows for income to be tax sheltered

•5.      Appreciation - over time the property increases in value

•6.      Insurance - you insure your property against catastrophic events

•7.      Local - can drive by your property to look in on in whenever you want

•8.      1031 Exchanges - deferring capitol gains when sell to roll into a purchase of something bigger

•9.      Can buy investment property with your IRA - still taking advantage of the tax benefits

•10.  Add value - simple updates, or an increase in the rent will increase the value of your property

 

4 Comments on Top 10 Reasons to Invest in Real Estate over the Stock Market

JUL
12
2008
134,620 Points

good post..I agree with you..I will have to use this when I speak to my buyers..

11:35am • #1

This is the wonderful thing about AR. I read these types of things and then forget some of the items discussed. Someone else posts a similar entry and reminds me of the things I forgot.

Good entry.

11:49am • #2
JUL
13
2008

Welcome to Active Rain! I am sure you will find this site both helpful and fun!

5:04pm • #3

Welcome to Active Rain! I hope you are enjoying it. I look forward to seeing you around!

9:08pm • #4


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James C. Johnson

Sioux Falls, SD

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Legacy Real Estate

Address: Crane Centre, 326 E. 8th St. #106, Sioux Falls, SD, 57103

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