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Benefits of Investment in Real Estate

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Money Talk > Real Estate

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shaunanderson
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Benefits of Investment in Real Estate  Reply with quote  

If you are thinking of an investment then real estate is a good way because of it is a low risk investment option. The biggest benefit of a owing real estate property is an income factor that needs not to be earned rather it comes itself.

If you are thinking of earning more profits than commercial real estate for leasing is a better option. It includes office, shopping mall, restaurants, hotels etc.

Some of the major benefits of real estate investment are mentioned below:

1. Gain more leverage
2. Cash flow
3. Tax benefits
4. Increased tax deduction strategies
5. Positive asset base
6. Long term investment
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Real Estate Developers - Play a leading role in the industry, developing the commercial and residential property.
Post Tue Oct 14, 2014 7:56 am
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littleroc02us
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Low risk in Real Estate? Sign me up please.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Oct 15, 2014 2:03 pm
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zhetrin
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i think the "low risk" in real estate investment is more subjective in a sense people feel that they can hold on to a physical investment and it's more long term compared to others like stocks/shares. You can see the fluctuations in stocks in hourly basis but for property it takes longer.

Then again depend on your goal on investing. If you have the capital to set aside and willing to settle for longer term investment, real estate might be your thing. For those seeking more liquid investment, try stocks. Or try investing in Indonesia if you want to try flipping properties. Always beware of the terms and conditions though Very Happy.
Post Mon Oct 20, 2014 9:09 am
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littleroc02us
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quote:
Originally posted by zhetrin
i think the "low risk" in real estate investment is more subjective in a sense people feel that they can hold on to a physical investment and it's more long term compared to others like stocks/shares. You can see the fluctuations in stocks in hourly basis but for property it takes longer.

Then again depend on your goal on investing. If you have the capital to set aside and willing to settle for longer term investment, real estate might be your thing. For those seeking more liquid investment, try stocks. Or try investing in Indonesia if you want to try flipping properties. Always beware of the terms and conditions though Very Happy.


And I suppose there is low risk in flipping properties.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Oct 20, 2014 8:56 pm
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zhetrin
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quote:
Originally posted by littleroc02us
quote:
Originally posted by zhetrin
i think the "low risk" in real estate investment is more subjective in a sense people feel that they can hold on to a physical investment and it's more long term compared to others like stocks/shares. You can see the fluctuations in stocks in hourly basis but for property it takes longer.

Then again depend on your goal on investing. If you have the capital to set aside and willing to settle for longer term investment, real estate might be your thing. For those seeking more liquid investment, try stocks. Or try investing in Indonesia if you want to try flipping properties. Always beware of the terms and conditions though Very Happy.


And I suppose there is low risk in flipping properties.


not with the flipping properties. more on the 'feeling' that real estate has lower risk as it is usually for longer term investment and the price fluctuations usually happen over a period of time. in stocks people will be stuck to the front of their screen every day to see how their money is doing.

real estate has higher risk if you intend to flip though. i watched people who went into buying frenzy after being able to sell 1-2 properties at almost double price, got more properties and stuck with it without being able to sell it back because the people who got their properties before is from developers and no one wants go get some properties with such inflated price.
Post Wed Oct 29, 2014 6:27 am
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littleroc02us
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Sorry, my response was more of a rhetorical statement regarding ShaunAnderson's posting.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Oct 29, 2014 7:15 pm
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edwardo541
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You have share really usefull tips
Post Wed Dec 17, 2014 12:02 pm
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albertofair34
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Re: Benefits of Investment in Real Estate  Reply with quote  

A big advantage real estate has over other investments, is that it can produce cash flow on a monthly basis. Positive cash flow is derived from the revenue collected in the form of rent and laundry income minus expenditures required to pay for and operate the building. The cash generated by a real estate investment will always be a much larger percentage cash-on-cash return than any other investment. The reason for this is leverage.
Post Thu Dec 18, 2014 12:34 pm
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fyaseo
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Real estate investment always gives u high ROI Smile
Post Fri Jan 09, 2015 10:42 am
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sideeffect11
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Project Mine  Reply with quote  

Visit here http://www.whatisgold.net/
Post Thu Sep 10, 2015 6:58 am
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stratamanagement
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It's not enough that you choose the right property. Owning a residential real estate investment (and this also includes strata properties) will only be profitable if you manage it properly. http://www.wastrata.com/
Post Tue Oct 06, 2015 12:06 pm
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Al_is_Well
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"Low risk?" Like someone said above, that's a subjective statement for sure. What's low risk for one person is high risk for someone else.

The more you know, and the more you can trust the people you work with, the less of a risk you're encountering, I believe.
Post Mon Dec 28, 2015 9:02 pm
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RohanAgarwal
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Usful Post!! Benefits of investing in property are endless. If you are going to invest on any property. You can use it for your business or you can sell it to any buyer.

rent office in mumbai
Post Mon Jul 17, 2017 5:41 am
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vanshikakumari
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A worth post to look at. It is the right time to invest in real estate. After the GST effect in India, some of the financial sectors are effected positively. Previously different tax were applied while taking any financial product. But now government has decided to put 18% GST tax on many financial products, of which Home Loan is one.
You can check for Home Loan EMI Calculator and check your Home Loan EMI to know the exactly.Home Loan Emi Calculator
Post Mon Jul 17, 2017 6:00 am
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anirudh
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I’ve had numerous conversations with entrepreneurs lately who have come to the final outcome that they have to start diversifying their business profits into more than simply a savings account. Should this be you - pay close attention.

Being a real estate investor isn’t always glamorous however it is one of the better ways to build wealth on the long-haul, especially when it comes to entrepreneurial-minded. Listed here are six factors why you should think about investing in rental properties.

1. Cash flow.

Many individuals spend money on rental properties mainly because of the cash flow - the money that is extra is left after all the bills have already been paid. The money flow can offer ongoing, monthly income that is mostly passive, allowing you to take your time building a small business, traveling or reinvesting much more real estate.

Cash flow from real estate is stable and a lot more predictable than almost every other businesses. That is perfect for entrepreneurs enduring the downs and ups of start-up life. The cash flow will help float you although the bad times and live well during the times that are good.

2. Tax benefits.

I would like to ask you a fast question: if you earn $100,000 at your personal business and I earn $100,000 through rental properties, who get’s to help keep more?

That’s right: I Actually Do. Since the government rewards property that is rental.

Not only could be the cash flow received from your own rentals not subject to self-employment tax, us government offers tax benefits depreciation that is including significantly lower tax-rates for long-term profits.

3. The loan pays down.

Whenever you buy a rental property using a mortgage, your tenant is clearly the one paying the home loan payment, thus increasing your net worth each month. Each month because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money.

Today you may owe $200,000 on a rental property, but next year you might only owe $195,000 due to the fact tenant is making the payment for you personally, making you $5,000 richer. Thirty years down the road, or long lasting term of one's loan, it's paid off to $0. You own an asset that is significant you can sell or continue renting, all thanks to your tenant paying the mortgage.

4. Appreciation.

Even though the loan is being paid down the worth of real estate, generally, goes up. Yes, I know, recessions do happen. Values do fall and rise. People buy during the time that is wrong with market. It is not by me.

However...

With time, values do climb higher and higher. That's why I’m not in this real estate game just for a year and on occasion even 10 years. I’m in this for a lifetime. I understand my properties will continue to climb in order that 30 years from now, everything will likely to be worth a lot more than I’m paying because of it today.

5. A hedge against inflation.

Can you imagine paying ten dollars for a gallon of milk? Or five dollars for a candy bar? While those prices seem exorbitant to you, this is the future because of inflation. Inflation is the method by which prices increase because of the worth of money decreasing.

While many people fear inflation, as a property that is rental, I look ahead to it!

As soon as the cost of a gallon of milk hits ten bucks a gallon, guess what else will probably shoot through the roof? Everything, including rents and property values! The one thing that won’t increase, however, is my mortgage that is fixed-rate payment. As inflation pushes the price of living higher and higher, my cash flow shall only increase. This is the reason real estate is often called “a hedge against inflation." When inflation hits - I'm ready!

6. Control.

I don’t like my destiny linked with a board room on Wall Street or a nervous CEO in Silicon Valley.

This is why I choose to invest most of my income in real estate, comprehending that I am usually the one that is accountable for my success or failure.

If I would like a significantly better deal, I have to hustle to locate it.

If the rental market gets more competitive, I am able to compensate by increasing my advertising.

If values drop, I could decide to wait it out or increase the property to back drive the value up.

Quite simply, I get to control the situation, and my future that is financial my own two hands. And that meets me just fine.

Don’t genuinely believe that just by owning some rentals you are instantly likely to begin building wealth. Real estate is powerful - but only it right if you work.

You must discover ways to find money saving deals, how to evaluate an estate that is real, and just how to invest in any properties you intend to buy. Additionally, you have to address it like a business and nurture it as it matures. It's likely not likely to be totally passive at the start, but as an incredible number of individuals throughout history can see, the payoff is definitely worth the journey.

About me:

Masters Degree in Marketing. Love ideating, conceptualizing, strategizing and branding. Head of Digital Marketing, storyteller by profession. https://www.mymoneykarma.com/ or for any loan related queries contact@ 7330755533
Post Thu Jul 20, 2017 8:41 am
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