Everyone knows someone that has made a good investment in Real Estate
Generally the same can be said for stocks, but it's just not as common in our experience. And wealth in the stock market can be fleeting as we all know from the past few years.
The Stock Market is an inconsistent, unpredictable, and volatile environment that offers little if any tax benefits.
For decades, real estate has been the most reliable and dramatic wealth generator for millions of people.
Real estate markets with steady solid growth represent little risk to investors. A benefit of investing in real estate is that the price of a property will never go to zero. The same cannot be said for stocks, unfortunately, witness Enron.
Real estate is in limited supply, has universal demand, and is constructed from materials that are consistently going up in price, such as lumber, copper, steel and concrete.
Real estate investors have more control over their investments than do stock holders.
Stock investments also suffer from sharp spikes in volatility when their price fluctuations have nothing to do with the quality of the company.
Despite the recent slump in housing, housing prices have not declined significantly. Real estate is stabilized by the simple fact that housing is a universal need. And with the population rising, and labor and construction costs rising, real estate prices will rise in the long term.
Finally, real estate offers significant tax benefits. Today's markets also have opportunities such as in the go zone that enable investors to carry back depreciation writeoffs the past five years or forward 20 years. When you sell stocks, you will pay taxes, there is no way to avoid it. But selling real estate does not create a taxable event, as 1031 exchanges and flexible capital gains rules enable investors to shelter their gains.
When you combine the benefits of investing in real estate versus stock investing, it is obvious that real estate provides an ideal and profitable investment vehicle. |
