subject: Real Estate Investing, Why Not? [print this page] Because of the recent housing bubble, many people are saying that it is a bad idea to invest in real estate. According to them, you shouldnt buy investment properties amid the ongoing financial crisis or lose your hard-earned savings. But if what these cynical people are saying is true, then how come the number of real estate investors is growing by the day? How come many people are rising from rags to riches through real estate investing?
Despite the gloomy economic climate, buying investment properties remains one of the best ways to make money in the real estate business. Compared to trying your luck at the stock market, investing in real estate is relatively safer and more stable. Why? It is because real estate prices dont go up and down by the day.
While it is true that buying stocks can yield high returns, you cant be sure that such instances will continue all throughout the year. As we all know, stock prices can be easily influenced by social and political upheavals in the country and in abroad. Who knows, you might be enjoying big profits one day but lose them all the next morning.
Real estate investing also gives people the chance to make money even after their retirement as it offers long-term investments. If you buy an old house, fix it up, and find tenants for the property, you can receive rental income every month. And if you add more amenities to the property, you can collect higher rental fee. Just make sure that the house is always occupied you can have a continuous and stable source of income even after you quit your job.
Another benefit of investing in real estate is that you can quality for tax breaks when you file your tax returns. All the expenses you get while owning an investment property, such as the money spent on repair and maintenance, agents fees, and loan interest, can be filed as deductibles.
According to market analysts and experts, now is the best time to invest in real estate because of the simple fact that home prices are at their lowest. By purchasing inexpensive houses, you can earn higher capital gain when the US fully recovers from the housing bubble and the economic recession.
Capital gain, by the way, is the profit that you earn by investing in a particular asset that exceeds the assets purchase price. So when the economy gets back on its feet, real estate prices are expected to rise, thus, giving you the chance to earn twice the amount (or more) you spent on buying a property.
