The Benefits of Owning #RealEstate

There are proponents of owning real estates as there are those who are completely not in agreement.

Just note that all types/forms of investments carry risks with them. It all just depends on how much risk you are willing to take. Some make money via arts — yes arts. Others did not go far with it. Stick with whatever form you feel comfortable with.

Most RE deals should offer you at least one of the following advantages….and in most cases all four might come with a good deal. Now, it should be said that some of these “juices” might come later down the line. There are experts out there that will not take a deal IF it does not offer at worst two of out the four benefits listed below.

[I] CashFlow — Obviously, a good sweetner. CashFlow is what is leftover after deducting your all youe expenses. Monthly cashflow from a RE deal is a must for most investors.

[II] Appreciation — The value of the RE from last year must go up. It shouldn’t stay same ideally. These will vary from RE to RE. It is also dependent of some other factors. Improvements around the area or even on the said RE might boost its appreciation.

[III] Loan Pay Down — Yes. This is by far the most important for those starting out. Often, it might just be what new entrants want. Loan Pay Down from the tenant gives them room to focus on something else. This is tied to number 1 as well.

[IV] Tax Benefits — Definitely, there are tax benefits of owning a RE. You can always offset some items to reduce your tax exposure. This reduces how much you will pay in taxes.

As earlier stated, some of these will come later down the line. Some RE just offers this right at the start.