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Positives to Real Estate Investing

17 November 2020 No Comment

It is no secret that many people are making a lot of money from investing in real estate. Real estate investors like Paul Daneshrad have been a handsome living at it and it could be their sole source of income. It probably is not because all investors know you must have a diverse portfolio of investment. We would like to outline some of the positives of investing in real estate for those of you that still are not sure that is the best way for you to invest.

Real estate appreciates. There are some rare occurrences when property value may go down, or you may a bad investment by paying way too much for a house. These are typically exceptions because most of the time, real estate is going to increase in value. It is possible to put so much money into a house that you will not see a return on that investment, but that is usually an error on your part and not because the house did not increase in value. There is a limit as to how much money you can expect to get out of a house. You must be careful not to blow that out of the water.

You can get significant tax breaks when you have real estate. Investors in real estate get some special deductions such as depreciation and tax rates that may be a little lower. You are able to deduct expenses because your investment is a business. You can get a steady flow of money when you own investment property. You can rent the property and collect rent. After you have paid all the bills, you can count the rest of the money as income. This is considered passive income because you do not have to do anything to get the money. This is, of course, after you go through the initial set up and hire someone to maintain the property. While you are earning rent, you are also paying the mortgage which allows you to build equity in the house. It can be a win-win scenario for you.

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