The answer, one word: control. There is no other investment that offers both control over the aspects involved make money and keep it.
Many believe that investing is risky because you have no control over the assets in which they invest. There is very little control over savings, stocks, bonds and mutual funds.
CONTROL = LITTLE RISK
People are concerned about job security because they have no control over their use. Few employees exercise some control over the property of the company, how many pay tax or the future of their employment.
In addition to control real estate offer many other advantages. Without adequate property purchase price, funded either, it’s in a good area and is well managed, the following advantages of real estate shall rejoice.
1. Cash Flow: cash is received each month.
2. Leverage: banks lining up to lend money to be investing in properties.
3. Amortization: tenants pay the debt.
4. Depreciation: the government offers tax shelters because the bins roots lose value, though, is not common to do so. Actually, the reason that the government provides incentives for depreciation is that real estate investor provide housing.
5. Creativity: the value of the property increases thanks to the creativity. For example, if you buy a plot of land you can change the zoning classification; or if you buy an old house you can remodel; or you can buy an apartment and sell it as individual condos.
6. Expansion: when learning to buy individual houses starts buying housing units.
7. Prediction: takes about a year to stabilize an apartment complex after buying it. After that year, management can get rid of bad tenants who wish to make renovations good tenants and slowly raise the rent. Once the property is stabilized, checks start coming in like clockwork. This is certainly better than the vagaries of the stock market: feel good when prices rise and how bad fall.
The key to success in real estate in good administration in stocks, bonds and mutual funds is not successful in real estate, stems that are bad managers or will not be.
In SILBELIZE with our investment plan, we have a wide range of properties and professionals in our portfolio that allows us to advise and provide the best service to our customers.
Because good governance is the key to success in real estate, some of the best opportunities arise to buy properties whose owners were bad managers.
8. Deferred Taxes: One of the great advantages of real estate are deferred taxes. There are many way a real estate investor can legally avoid paying taxes indefinitely, where money can be reinvested without paying taxes.
The ability to defer taxes is not available to those who invest in stocks, bonds and mutual funds. You’d be surprised how fast you can get rich if you do not pay taxes.