Why Invest In Boise Real Estate? There are truly many advantages of investing
in Boise Idaho real estate. More millionaires have made their fortunes in real
estate than anything else! More than investing, and more than internet marketing
Toronto. Here is what some of the wealthiest Americans have said: "Real
estate is the basis for all wealth." -Theodore Roosevelt, "90% of
all millionaires made it through real estate." -Andrew Carnegie
Let's look at some of the advantages in more detail:
1. APPRECIATION - Over the past 80 years, Boise real estate values have continually
increased. There have, of course, been some periods where values decreased,
but the overall trend has been nothing but up. Like anything else, the value
of real estate, whether it is a commercial building in Fresno or Burlington
Ontario homes for sale is determined by supply and demand.
So what are the factors that have made Boise real estate in such high demand
over the years? One of the main reasons is that shelter is a basic human need.
People need places to live, work, and shop where they aren't exposed to
the weather. In periods of high inflation, real estate values go up. Real estate
is an investment that actually benefits from inflation.
2. LEVERAGE - A great thing about Boise real estate is that you can tie up
a big asset with a relatively small amount of money. You can easily buy a $100,000
home with only 10 percent ($10,000) down payment. To illustrate the power of
this, consider this example: Suppose you bought $10,000 worth of gold, mutual
funds, or some other investment. Let's say that it goes up 10 percent
for the year- not bad. Your investment is now worth $11,000. So your return
is 10 percent of $10,000, or $1,000. Now lets suppose that you take that same
$10,000 and put it as a down payment and buy a $100,000 house, or a unit in
the Brampton condos. Again, let's say that it goes up 10 percent for
the year. Your property is now worth $110,000! Your $10,000 investment increased
by $10,000.
That is a 100 percent return on your money (not even considering the equity
build-up resulting from the constantly decreasing mortgage, cash flow, or tax
advantages)!
3. TAX ADVANTAGES - You can deduct, as an expense, all of the interest, property
taxes, insurance, repairs, inspections, and depreciation on your investment
real estate- no matter how much you own. Do not confuse this with the rule for
personal residences. While you can only deduct interest on up to 2 personal
residences, you can write off unlimited investment interest.
The IRS also allows you to take a paper write off (depreciation). You can depreciate
the structure (not the land) as if it would be worth nothing at the end of 27.5
years! Of course we all know that the property will probably be worth much,
much more in 27.5 years than it is now -not less. Nevertheless, on a 100,000
house (assuming, for example sake, the structure is worth 80 percent of the
total) we are allowed to write off nearly $3,000 in depreciation alone each
year! You could easily purchase a block of Mississauga townhouses with those
savings.
4. FREEDOM - While there is some management and record keeping required, it
is nothing compared with some other investments. If you invested in a business
such as a dry cleaners or a restaurant, you would be married to the place, putting
in God knows how many hours. Real estate investing can be done without too much
interference with your current job.
5. SOMEONE ELSE PAYS FOR IT - With Boise real estate, the people who occupy
your buildings are called tenants. They pay you rent every month that you then
use to pay the mortgage. The tenants literally buy your investment property
for you! When you invest in stocks, bonds, or precious metals, you are the one
who has to pay for it.
6. CASH FLOW - Real estate provides you with a monthly cash flow. This can be
some very significant income, especially after the loan is paid off!
7. SOLID ASSET - Real estate is widely recognized as one of the greatest assets
to have. It is looked upon favorably by anyone looking at your financial statements.
Real estate is also easy to borrow against should you need extra capital.
Once you understand all of the advantages of investing in real estate, versus
some other type of investment, purchasing shares in wastewater management chemicals
for example, it is easy to see that very few, if any, other investments can
match real estate. No wonder it is the favorite of millionaires! If you want
to be successful, do what the most successful people are doing - invest
in real estate!
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