Post your real estate investment tips in this thread
I'm looking into buying investment property right now. Lemme give you a few reasons why it's good to invest in property:
- Unlike stocks, property can't go suddenly down 0$ in value, unless destroyed, and you should have insurance for that.
- You can buy $100,000 worth of property with only $10,000, try doing that with anything else, your banker will laugh at you.
- Investment property has many advantages:
1 - Amortization due to depreciation = tax deductions
2 - Increased value over time
3 - Increase in cash flow + loan payment from the rents
Imagine you have $10,000 to invest.
Which would you rather do? Invest in $10,000 of stocks on the market or get a loan and buy a $100,000 property?
Now imagine your property goes up in value 5% the first year while your stocks increase by let's say 25%
Your stocks are now worth $12,500 which means a ROI of 25%
Your building is now worth $105,000 which means a ROI of 50% since you invested $10000, so $5000/$10000 = 50%
And on top of everything, we're not even including tax deductions due to amortization and the rents your tenants will pay.
So shoot me some investment tips, i'm all ears
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