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There are many reasons why investing in
real estate over other investment avenues is a safer and
more profitable route to take and we will go over just a few
of these factors with you in this article. First thing to
note is that if you look at the real estate market as a time
line compared to the stock market you will notice that real
estate is a growing line with few major fluctuations. On the
other hand the stock market has high points and valleys that
range from quick high’s to sudden drops through out it’s
history. It’s harder to look at the time lines of other
forms of investing i.e. currency investing, mutual funds,
buying gold and silver etc - but one thing is clear, no
other market is as profitable or as safe as the investment
real estate market.
Many people ask me “Why is investing in real estate such
a safe investment?” and the answer is as simple as it is
complicated, the quick answer is “God isn’t making any more
of it” the more complicated answer isn’t as poetic. The
reason investing in real estate has so many benefits has
many factors, I will go over the basics with you now:
1. Government Tax Breaks - The United States government
has setup multiple tax breaks for real estate investors
including the very popular 1031 exchange. The textbook
definition of a 1031 exchange is:
"A 1031 exchange or
Like kind exchange is defined by
section 1031 of the Internal Revenue Code. This code
specifies that if an asset, usually some form of real estate
such as land or a building, is sold and the proceeds of the
sale are then reinvested in a like kind of an asset then no
gain or loss is recognized, allowing the deferment of
capital gains taxes."
The simple explanation is as long as you reinvest the
money you made from your real estate investment into another
investment you don’t have to pay taxes on said profit. No
other form of investing gives you this much freedom with
taxes.
2. Anyone Can Invest - Because real estate investing is
so profitable and safe it see’s a huge amount of amateur
investors entering the market everyday. Why else do you
think all these infomercials are on late at night talking
about the millions they’ve made overnight with someone’s CD
set? O.k. I’m not saying that buying one of those CD sets
will make you a millionaire but they are good to learn the
basics of real estate investing from. The big problems with
these CD sets is they teach making millions in real estate
with bad credit or without spending a dime. This is not the
case, 99.9999% of the time you will need excellent credit
and a good amount of money for the down payment on an
investment property (usually 10-20%).
3. Other People’s Money - Why invest your money when you
can invest someone else’s? One of the big rules in real
estate investing is “If someone is willing to flip the bill
- let them”. Banks are more then willing to give out a loan
to buy houses because unlike other forms of investing they
have something tangible they can keep if you don’t pay up.
Banks are usually not as willing to give loans for stock or
gold investing because the stock you invested in maybe worth
nothing by the time you sell and the bank has nothing OR you
take your gold and run across the border. Real estate is
almost always going to be worth something (often increasing
in value every year) and their hasn’t been a recorded case
yet of someone taking a house across the border.
Right now the investment real estate market is booming
like never before in history and those investing in it are
being rewarded more so then in any other time in. If you
want more information on this explosive market feel free to
visit my website or give me a call and I will answer any
question you may have.
Goldberg Executive Realty Group
Mark Goldberg
Phone: 1-866-247-2259
E-mail:
GoldbergRealtyGroup@cfl.rr.com
http://www.InvestRealEstate101.com
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