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/$10000 = 50%
And on top of everything, we're not even including tax deductions due to amortization and the rents your tenants will pay.
So shoot me some investment tips, i'm all ears
- Unlike stocks, property can't go suddenly down 0$ 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
Comment