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Investing Equity Real Estate is one of the best investments that you can make Use the equity in your home to make real estate investments and build wealthKey BenefitsMore people become wealthy through Real Estate investing than any other method.Don't miss out on one of the best investments around: Income Property and Residential Real Estate Investment. Last year's growth was robust with average sales prices rising about 25%, but even if we use conservative numbers from the period from 1996-2002, when homes in the area appreciated about 5% a year, it's easy to see why real estate makes sense.* 5% a year doesn't seem like much because you might be able to earn a similar return with a very safe investment in treasury bills or bonds. But there is more to the picture...if you purchased a $150,000 house, and you got a mortgage for 80% of the cost, you'll end up putting 20% down which is a $30,000 investment. At an annual appreciation rate of 5%, a $150,000 home would increase in value $7,500 during the first year. That means you earned $7,500 with an investment of $30,000. Your annual return on your cash investment is 25%. Yes, you are making mortgage payments and paying property taxes, along with some other costs. However, since the interest on your mortgage and the property taxes are tax deductible, the IRS is basically subsidizing your real estate investment purchase. Plus on income property, you can deduct 3.5% of the property cost per year in depreciation to offset any profit you will make on your income properties. This is the power of leverage at its best...Real Estate is an excellent investment when done properly. Making the choice to invest in real estate is one of the strongest, safest, smartest investments you can make.
Why? | It appreciates at a rate far greater than the rate of inflation | | It builds equity at a stable rate | | It consistently provides a steady return on investment | | It gives you ways to earn extra cash | | It offers generous tax benefits |
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