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Real Estate is the ultimate investment regardless of whether the market is good or bad. The payoff for buying real estate comes back to you in multiple ways. First when you pay your mortgage, you are really paying yourself. You build up savings which is called equity. Equity is the amount of property which you have paid for versus the amount the lender is still owed until the mortgage has been paid off. The longer you keep paying your mortgage the more equity rises which gives you the advantage of being able to sell or refinance whenever a large amount of cash is necessary for you or your family later on. If real estate values depreciate you may not be able to sel or refinance for as much as you did when you bought the property, but if the values appreciate you can refinance for even more than what you paid or sell it and make an even larger profit. Either way, you still pay yourself and real estate ownership pays you back, especially over many years. It is the best investment you can make for yourself. Tax Advantages. The interest from your mortgage and real estate taxes is allowed to be deducted from your gross income. As a result your income tax bill is substantially reduced and you receive more money at the end of each year from the tax deduction. Real Estate is a stepping stone to wealth. As you pay for your first property it becomes easier and easier each month to afford an even better home or property in the future. Stability. Rent increases and lease terminations do not happen when you own the property. You have a more stable monthly payment also when you own. Ownership satisfaction. You can decide to beautify and remodel your home according to your own needs and taste. Finally, ownership is an American dream and gives you a sense of pride and belonging in the community in which you live. |
