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Real Estate VS Other Investments

The options for investing are almost endless; you’ve got real estate, stocks, bonds, jewelry, and everything in between. But how do you know which is right for you, what is easiest and what will bring you the highest profits? What sets real estate investing apart from all of these other choices? It brings you cash flow that is determined by your decisions. The reason you invest in the first place is to gain passive income. Whether your heart is set on buying a house and flipping it or buying a house to rent out, there are countless benefits to choosing real estate investments over other investments.

Let’s take a look at some of our favorites!

Taxes:

Depending on what you intend to do within the realm of real estate, there are a lot of tax incentives for things like owning vacant land to renting out a home!

Equity:

If you rent a home out, you are pretty much getting paid to build equity. With each house payment you make, you’re receiving benefits in several ways.

Profits:

To piggyback on to the previous benefit, after you get the rent payment and pay the necessary bills whatever is left over is called cash flow or the profits. You can do whatever you please with cash flow because it is tangible; you can go to the bank and spend it that day if you want!

Let’s quickly take a look at other forms of investment. Stocks allow you to buy a percentage of a company. When the company succeeds, you succeed. But in the same way, when a company fails, you also fail. And the tricky thing about stocks is that you have nothing to do with the companies’ plans to succeed, you are purely investing money. Similarly, bonds are kind of like a loan from you to a company that the company will pay back with interest, so while bonds are not as risky as stocks they also do not provide the same beneficial returns.

So after considering the benefits of investing in real estate as opposed to investing in other things, real estate can be a fun venture! The risk is low and the profits can be high. Whether you intend on buying a home to renovate and resell or if you are looking for a home to rent for passive monthly income, we would love to help you on your journey through real estate investment. Give us a call and we can discuss your needs and how we can help you achieve your goals.

 

 

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