The 4 Best Reasons To Invest In Real Estate

The great 19th century steel building industrialist Andrew Carnegie once said "90% of millionaires became so through owning real estate."

The following list highlights the major benefits of investing in real estate:

✓ Tax-deferred compounding of value: In real estate investing, the appreciation
of your properties compounds tax-deferred during your years of
ownership. You don’t pay tax on this profit until you sell your property —
and even then you can roll over your gain into another investment property
and avoid paying taxes.

✓ Regular cash flow: If you have property that you rent out, you have
money coming in every month in the form of rents. Some properties,
particularly larger multiunit complexes, may have some additional
sources, such as from coin-operated washers and dryers.

When you own investment real estate, you should also expect to incur
expenses that include your mortgage payment, property taxes, insurance,
and maintenance. The interaction of the revenues coming in and
the expenses going out is what tells you whether you realize positive
operating profit each month.

✓ Reduced income tax bills: For income tax purposes, you also get to
claim an expense that isn’t really an out-of-pocket cost — depreciation.
Depreciation enables you to reduce your current income tax bill and
hence increase your cash flow from a property.

✓ Rate of increase of rental income versus overall expenses: Over time,
your operating profit, which is subject to ordinary income tax, should
rise as you increase your rental prices faster than the rate of increase
for your property’s overall expenses.

To learn how to invest in real estate - >>>>>CLICK HERE<<<<<