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					Title:
Four Advantages of Real Estate Ownership


Word Count:
413


Summary:
The following key factors are commonly accepted as the major reasons real estate continues to be a good
investment. For the majority of real estate participants, these factors are the most critical issues in a real
estate venture.



Keywords:
Real Estate



Article Body:
The following key factors are commonly accepted as the major reasons real estate continues to be a good
investment. For the majority of real estate participants, these factors are the most critical issues in a real
estate venture.


<b>1.) Real Estate is a Necessity:</b> Real estate is at the very core of human existence. We all have three
important basic needs: food, clothing and shelter. Our world continues to expand as more and more people
are being born every day. In addition, there continues to be larger migrations of people from rural areas to
more populated locations. Therefore, people will always have the need for temporary lodging, permanent
shelter and places to conduct business.


<b>2.) Hedge Against Inflation:</b> Inflation is the invisible force eating away at the purchasing power of
our dollars. A dollar, however, doesn’t buy today what it once used to. It is also evident that the quality of
goods our dollars purchase is also diminished. For instance, the McDonald’s “Big Mac” has become
progressively smaller year after year. Plus, when we purchase a box of our favorite breakfast cereal, the bag
inside the box is practically half empty.
From the tenant’s perspective, rent seems to go up constantly and anyone on a fixed income may find it
difficult to keep up with the cost of living increases. The owner of the property also feels the effects of
inflation in the form of increased property related expenses, taxes, utilities and maintenance costs. As
property costs rise, owners typically pass these costs on to their tenants in the form of increased rents and
fees. Furthermore as inflation increases so do property values; owners will often benefit from the property
appreciation.


<b>3.) Production of Income:</b> The most attractive and lucrative reason for owning real estate is in its
ability to produce passive income for the property owner. Rent is accruing daily while payments made by
the tenants pay down debt balances and produce predictable profits. Once the property is free and clear, the
portion of income that was once used to service the debt payments now goes into the owner’s pocket.


<b>4.) Appreciation in Value:</b> Due to inflation, property appreciates in value. Usually, this statement
is generally true. While there are no guarantees, if care is taken with regards to timing of the acquisition and
trends in the overall marketplace, real estate tends to perform well when inflationary conditions are flat with
some moderate expansion.




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