Those individuals who invested wisely in real estate many years ago are living a very comfortable lifestyle. Investing in real estate wisely can produce additional income and your financial portfolio diverse. When I work with investors, I complete a five page analysis for them to consider prior to purchasing.  It helps protect them with their investment as they get a complete perspective on the investment property.  So if you're just getting started, or have considered investing in real estate, please call 919-225-1393 or send an email to SmartMove123@Gmail.com   and ask me for my five page financial analysis.  Here are some of the benefits of investing in real estate.

1. Appreciation
Appreciation is the increase in value of a property. When you improve a property (through renovation), you are, in effect, forcing its value higher. You can purchase a piece of property in need of repairs and bring it back up to neighborhood standards or slightly higher. This will give you a property that is much higher in value.

As a fairly general rule, homes appreciate about five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region. Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could earn over six percent with the safest investment of all, treasury bonds. But take a second look.

Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage. Suppose you put as much as twenty percent down - that would be an investment of $40,000.  At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.  Your rate of return when buying a home is higher than most any other investment you could make.

2. Leverage
Leverage is the ability to borrow a percentage of the value of a piece of property. Real estate, in comparison to other investments, offers a very high degree of leverage.  In some cases a couple buying a single-family home can obtain 95% financing. This allows individuals to purchase real estate with little, if any, of their own money. What other investments offer such a high degree of leverage?

3. Amortization
With leverage, or the use of other people's money, comes a repayment schedule. Your outstanding balance is being reduced with every payment you make. Part of each payment goes to interest (applied first), and part of your payment goes to principal. The principal reduction is called amortization -- reducing debt. Hence, amortization can make you wealthy -- slowly and steadily.

4. Tax Advantages
Owning real estate with the goal of making profit allows you to deduct interest payments and other expenses come tax time. But, don't be fooled into buying real estate for the tax advantages; buy real estate because it makes economic sense to do so.   Allow me to help you with the financial analysis to see if it is right for you!

Investing in real estate is a great way to achieve your financial freedom.   The benefits are definitely there.