This is a competitive world out there. There are many investment options. So why do you have to invest in real estate? Well, real estate has some unique qualities that make it one of the top investment strategies in M.S. For hundreds of years. The benefits include:
You can be paid twice – not once like most other investments.
In real estate, you get money from property operations (also known as “dividends”) and the second time when you sell it, and the value increases due to rising rental (known as “capital appreciation”). This is different from most other investments such as precious metals and non-dividend payment stocks, where you are only paid based on appreciation to the value of assets. For example, if you buy an ounce of gold, you don’t get one pen in a dividend. The only thing you get is the difference between what you buy for gold and for what you sell it. The same thing applies to most shares. Obviously, the best of all the world is to get consistent income when you have it, and then a large distribution when you sell it.
It pays higher dividends than other forms of investment.
Most real estate investments pay a dividend of around 10%. The average stock pays dividends – and most of it is not – lucky is 1%. The same applies with CDs and bonds – you see about 3% to 5%. There are no other forms of investment that can pay a dividend as high as real estate. Of course, there are items such as “trash bond” that might pay 10%, but they might likely lose all your investments if they are default. That’s why they call them “garbage”. Remember the saying “Before you can return to investment, there must be a return on investment”.
Appears with interesting leverage.
Most real estate investments include potential leverage in the form of a mortgage. This allows investors to create higher returns, without taking excessive risk. If you buy property and put 20%, and borrow the remaining 80%, you will increase the results on your investment very, assuming that the results of all properties are higher than mortgage interest rates. The ability to utilize smart leverage has long been an attraction. This allows you to pay off the property using the property cash flow itself. Can you do this with a CD? Not. Bond? Not. Gold? Not. Of course, you can buy stock in margins, but it really is a form of speculation more than investing, and often has terrible consequences.
This has been proven and has an impressive track record.
Investing in real estate has an impressive genealogy. Millionaire America First – John Jacob Astor – made his wealth in Manhattan Real Estate. Since then, many of the richest people at M.S. has created their wealth in real estate. This includes Donald Trump, Conrad Hilton, Joseph Kennedy, and literally hundreds of thousands. It has been confirmed that more wealth has been created through real estate investment than all other forms of investment are combined.
When you invest in stock or bonds, you really don’t have control over where your money goes or how the company is managed. Unlike Warren Buffet, which usually buys full control over entities through buying the majority of shares, regular investors do not have power over the daily operations of the business they have their stock or bonds. In addition, their stock or bonds. usually not guaranteed with anything real. In most cases, what you have as security for your investment is a piece of paper and hope that there will be a buyer market for a piece of paper in the future. With real estate, you get a deed to property – the title for assets will be put in your name. You control what happened. You are the boss. Your investment – your capital – supported by the title for real estate.