The
real estate market has plenty of opportunities for making big expansions,
buying and owning real estate is an ideal investment to make.
For
most people this involves investing in something like a Real Estate Investment
Trust known as a REIT which trades just like a stock and is truly a pure real
estate investment for the investor. Investing in real it's a good way to
increase cash flow and offers many profitable investment options.
Following
are the three characteristics that must exist to meet the definition of high
return/low risk real estate investing.
One
can own property directly or have an ownership interest in specific properties.
That
property produces a regular income that exceeds your expenses.
Noah George provides some level of
labor or management necessary to run this as a business rather than as a pure
investment.
Below
are the few most significant benefits of investing in income creating real
estate. These profits come together in a mode that permits real estate to deal
higher earnings than traditional investments like, better safety than usual
high return investments.
The
income flow tends to be stable and predictable - Rents be likely to to slowly
rise over time but even during hard economic times they tend to be properly
stable, dropping only discreetly. One wont be wondering how much income
properties will produce next year. It will produce the same or may be little
more as compared to last year.
Noah George says the primary property
will naturally grow over time - this is the addition to the income stream, as
the property escalates rents will tend to rise with it meaning that one income
stream will also grow over time. Both of these act as a hedgerow against
inflation.
You
get tax benefits as well in real estate that is not available with most
investments - The most valuable is the tax deduction allowed for depreciation
of the property. At the end of the day it is mutual for the investment to
generate substantial net income.
When
purchased rental properties generate significant cash flow - if one is buying
with 100%cash then the cash flow is likely to estimate the cap price and that
price be likely to run between 5-10% depending on the type of property.
