Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Why Real Estate Investment?


Why should you invest in real estate? Well, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today. In fact, if you pay attention to recent press you will have seen numerous reports about the real estate investment craze that seems to be sweeping the Nation.

When done carefully and intelligently, real estate can yield fantastic benefits that can not be achieved through any other type of investment. Here are just a few examples of why real estate investing can be such a powerful wealth generator.

1. Real Estate Markets Are Slow to React - Although real estate, like everything else, has ups and downs, it is generally a lot slower to react than the stock market. For example, you won't get up in the morning and discover that your real estate investment is worth ten or twenty percent less than it was yesterday.

2. Leverage. You can borrow money to buy real estate, whereas, generally you can not borrow money to buy stocks. You can control a large dollar value of real estate with a small amount of your own money by using loans and mortgages. The stock market, by law, limits the amount of leverage (margin) you can use to buy stock. There are no such limits with real estate.

3. You Can Purchase Real Estate For Less Than Its Market Value. In many cases you can purchase a property for as low as 60 to 70 percent of the market value. When buying stocks, you may be able to find a stock that is considered "under valued" but generally it's tough to do that on a regular and consistent basis.

4. Real Estate Offers A Tremendous Amount Of Tax Advantages Through Depreciation. Real estate basically has two values, the land and the building(s) on the land. For example, if a property is valued at $250,000 and the assessed value of the land is $75,000, the building would be worth $175,000.

The government allows real estate investors to depreciate the value of the building in equal parts over its "useful life" which is defined as 27.5 years. So for example, based on the $175,000 building value above, the annual depreciation value would be $6,363.63 ($175,000 divided by 27.5). This means that for tax purposes, the investor would be able to reduce his/her annual income by $6,363.63!

Many people find the notion of depreciation to be confusing since it's not really a loss of money. I recommend you check with a qualified tax professional for more details and how this can benefit you.

5. Real Estate Markets Are Insulated Local Markets. For instance, when the stock market falls, it takes down just about everybody and everything involved with it. When home values drop in one city such as New York, generally it does not affect property values in other cities like Boston or Chicago. To protect yourself, you can have a "geographically diversified" portfolio of real estate investments to hedge against these types events.

6. You The Investor Can Control The Value. Another aspect of real estate investment is that unlike any other investment, this investment is controlled by the investor. For example, as an investor, you can increase the value of your investment property by making some modifications to the property such as adding a garage or replacing the carpet, etc. With stocks or any other investment, the investor can't do anything to increase the value of the investment.

7. The Efficient Market Hypothesis (EMH). When a market has prices that always "fully reflect" available information, it is called "efficient". The stock market for example is considered by most to be an efficient market. When you call your broker to purchase or sell a stock, you can be sure of one thing - the price you bought or sold the stock for was indeed the "correct" price for that stock on that day and at that time. Why? Because the existing price for the stock will already incorporate and reflect all relevant available information about the company such as earnings, and other metrics.

With real estate, the market is very inefficient. Unlike the stock market, with real estate, the "correct" price discovery mechanism is left to each buyer and seller to figure out on their own. There is the almost always uncertainty as to whether the price offered by the seller is too high or too low. Moreover, there is typically little to no help available from analysts and research agencies (like when dealing with stocks) in this respect. This inefficiency is the very reason why real estate offers such a great investment opportunity to be smart and win! But it requires experience and a sharp eye for good deals and great negotiation skill. This expertise can be developed.

If done correctly, real estate is probably one of the smartest investments you could ever make. Hopefully this short rambling has provided you with a fresh perspective of the many benefits of real estate investing. So be smart, continue to learn and above all don't wait for some magic moment, just get started.

To Your Success!

Rik Foote

Rik Foote is the President & CEO of The Dorian Group, Inc. Dorian is a software company that develops affordable software applications designed to help beginners get off to a realistic and practical start as real estate investors. To learn more about Dorian's products and services visit http://www.reiscouts.com


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


New York Times

Recent Commercial Real Estate Transactions
New York Times
A local real estate investor has bought this 6,200-square-foot, five-floor apartment building in the Brooklyn Heights Historic District. The 25-foot-wide building, which does not have a stoop, has five floor-through apartments, of which three are free ...



Houston Chronicle

Why Mattress Firm blanketed the Houston real estate market
Houston Chronicle
On the newest episode of Looped In, Nancy Sarnoff and Chronicle retail reporter Paul Takahashi take a deep dive into Mattress Firm's strategy of "over-storing" and talk about where the company -- now in Chapter 11 -- goes from here. Houston retail ...



Curbed

Climate change and the coming coastal real estate crash
Curbed
The Sand Palace story also underscores a new reality that's been slow to dawn on many involved in coastal real estate: Climate change, and the accompanying rise in sea level and storm activity, will require expensive investments and shake the ...



Brownwood Bulletin

Dear Monty: 5 critical components for successful real estate investing
Brownwood Bulletin
Reader Question: I am considering investing in real estate. Can you explain how people avoid taxes just by owning property? Monty's Answer: Real estate investors do not invest in real estate to avoid taxes. They invest in real estate to build wealth.



Real Estate Q3 Earnings Preview
Seeking Alpha
Earnings season kicks off this week in the real estate sector. More than 100 REITs and 10 homebuilders will report third-quarter earnings over the next five weeks. Real estate equities continue to be negatively impacted by rising interest rates. REIT ...

and more »


Forbes

How Real Estate Investors Can Make The Most Money Flipping Houses
Forbes
Real estate data company ATTOM reported the average profit on house flips in the United States was $65,520 in the second quarter of 2018. But ATTOM also notes that this is most likely not an accurate number to use for what professional flippers make on ...



The Seattle Times

Dino Rossi has done well in real estate, but his work is also fodder for campaign opponents
The Seattle Times
That refers, in part, to Rossi's association in the 1980s and 1990s with Melvin Heide, the owner of Capretto and Clark, a real-estate firm that went bankrupt, leaving a sea of bad debts and fraud allegations that eventually landed Heide in prison ...



Houston Business Journal

Transwestern creates 'strategic alliance' with Canadian commercial real estate firm
Houston Business Journal
Houston-based Transwestern Commercial Services and Canada-based Devencore announced Oct. 16 that they have formed a strategic alliance to extend their commercial real estate services. Combined, the two firms have 45 offices across North America, ...
Transwestern forms alliance with Canadian real estate firm DevencoreHouston Chronicle

all 7 news articles »


Deadline

CBS Television City To Be Sold To LA Real Estate Firm Hackman Capital
Deadline
Real estate values have been surging, especially in the neighborhood around the storied Television City site, where about a half-dozen shows including The Late Show with James Corden, The Price is Right and HBO's Real Time with Bill Maher are ...

and more »


Atlanta Business Chronicle

How Amazon HQ2 would impact Atlanta real estate
Atlanta Business Chronicle
A study by Owners.com, a technology-enabled real estate brokerage, found that home values in metro Atlanta could swell by 6.9 percent on the high end, in addition to current growth. Among the finalist cities in the study, Atlanta is in the middle of ...

and more »

Google News

home | site map
© 2006 TIGER MEDIA