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Old 05-26-2004, 09:15 AM  
Dildozer
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Join Date: Jul 2002
Location: Montreal
Posts: 7,519
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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