subject: Investment property loans - Advantages and disadvantages of real estate investments [print this page] Investment property loans - Advantages and disadvantages of real estate investments
Advantages:
When buying single family homes real estate, you can do one unit at a time.
Real estate investments can be aligned with good business experience for those who are not necessarily businesses.
To qualify to Real Estate Investment Trust (REIT) for tax, the shareholders of companies must be a flow back as at least 90% of their income in dividends. For this reason, the REIT gross-plus average annual dividend of 6%Yield.
REITs are not as closely correlated with the major indices as most industries are. As such, they can use the portfolio to provide some much-needed diversification and should help to even out your total income, especially during the losses.
REIT hard, tangible tenants, such as land and buildings, and often long term, sign their leases. For this reason, REITs tend to see some of the more stable society inMarket.
Requires, in general, more "hands-on involvement of other investment opportunities.
Maintenance and repair takes time, money or both. (And always seem to take more time than expected).
You have increased exposure, both legally and financially.
Your money is tied up in "brick" and not immediately accessible.
Why only reinvest up to 10% of their annual profits back into their core businessLines each year, REITs tend to grow more slowly than the average stock on the clips on Wall Street.
Although the company is currently relatively stable, REITs are not without risk. For example, dividends are not guaranteed and the housing market is vulnerable to cyclical downturns.
Since you already have a unique tax status than other firms (more precisely, are allowed, the dividends paid to deduct from their taxable income), apoint of view of investors, rather than two-thirds of all dividends REITs do not pay for the new, lower tax rate of 15% set by Congress last year to qualify. In contrast, the vast majority of dividends paid by non-REITs in this new low rate are taxed.
READ MORE http://www.investmentpropertyloans.goodarticlesite.com/advantages-and-disadvantages-of-real-estate-investments/
