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Real Estate Is A Lucrative Investment

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					Real estate is a lucrative investment option
Posted by admin On January 30, 2009 8:47 AM

With a continual economic progress, the real estate prices are soaring high to a very large extent. By
managing the rental real estate, one can easily engage in moneymaking without worrying about the property.
Investing is real estate market seems to be the wisest option if one really wishes to invest sensibly the hard
earned cash from a long time.

Real estate is an asset that is known to gain appreciation in its value with the passing of time. This soaring high of real estate rates
serve as a double advantage for the property owners. First, real estate contributes in generating large amounts of income when put
on rent along with saving tax by getting the tax deductions as laid under the taxation rules of the government. Secondly, as the value
of real estate increases day by day, the net worth that the investor holds is impacted strongly and he builds powerful equity with time.


Apart from serving as an alternative source of income, the real estate offers other rewards as well. Tax subsidiaries serve as the most
alluring profits that can be gained with real estate. When a people own a real estate, they are eligible to cut the direct costs from the
rental income. Under the income tax deductions, the charges for cleaning, property screening tenants, insuring and maintaining are
included. The interest costs and depreciation on mortgages are also qualified for the deductions. Even though the mortgages principle
payments cannot be written off completely, these payments benefit the investors by getting under the section of depreciation.


Real estate investment is considered to be linked with stability as it doesn?t fluctuate like the bond or share markets. Real estate is
featured with its own distinct periodical cycles but there are some specific areas that remain consistent most of the times. For
example, housing projects, being rental schemes or purchases are mostly in demand by the real estate investors.


Even in the uncertain economic moments, history has proved that the real estate industry is prone among the soundest and wisest
investments that a family or serious investors can make. In the time of Great Depression in 1930s, the housing rates dropped by only
39 percent as compared to the reduction of 89 percent faced by the stock markets. So, as per most researches on real estate trends,
rates continually remain at the similar level. In fact, real estate rates faced an increase of about 10 percent in 1970s and 1980s
economic recessions. The residential properties serve as more than an investment option. For instance, if one buys a vacation home,
that will not only make a lucrative deal when the real estate rates move upwards, it can even be the destination to spend your
vacations.


Another striking quality about the real estate investment is that it offers lower risk and provides better returns to the investor than
leaving the money in banks or financial institutions. The primary key to figure out if this observation pertains to one?s particular
condition is a simple process. Just calculate rental yield and then compare the amount with interest that the bank offers for the same
amount of money invested. Last but not least, the main key towards a successful investment option is to carry on with a good
research of the potential real estate acquisition. So, give your money in safe hands by investing in the real estate.


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