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Real Estate – Is it a worthy investment?

by admin on January 5, 2012

History dictates that investing in real estate has been one of the best investments.  For some, real estate has earned them more capital without the risk that some other investments pose.   Financial institutions and private lenders will lend money for the purchase of real estate because they understand that the likelyhood of their investment failing is minimal.   

Here’s why investing in real estate is worth considering:

Facts

Over the years, the value of real estate has continuously increased.   On average, the value of most homes has almost doubled over the past 10 – 15 years.  To put this in perspective, look at the value of your own home today compared to when you purchased it.  

Control over your investment

Owning real estate allows you to be in control of when to sell or to keep it as a means for increasing your profits. 

Flexibility

Owning a piece of real estate gives you the flexibility of furthering your investment portfolio.  Being able to take out additional financing if necessary can easily be done when you own a property.  You can also make money off your property by becoming a landlord. 

Reducing your mortgage

If you use your home as a rental property, rental payments can be put towards your mortgage.  This would decrease the amount that you have to pay, or pay down the principal balance on your mortgage quicker.

Potential Additional Income

Owning additional real estate will generate additional income for the present and for your future. 

Investing in more real estate

Owning real estate allows you to borrow against the equity to purchase additional real estate.  Investing in more real estate means even more equity for you as an individual.

Invest in the future

Owning real estate holds many advantages.  In addition to being able to sell at any time, rent to provide additional income or save on your taxes, your real estate investment can also be passed on to future generations in an effort to give them a head start in ownership of a great ongoing investment.

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