The
sheer number of investment vehicles available
to you these days is absolutely staggering. Stocks,
bonds, precious metals, commodities, options,
derivatives, real estate, etc., etc., etc. -
it can make your head spin! Now, all things being
equal, none of these investments are better than
any other. If you know what you're doing, you
can make money in any of them.
However, for the average investor, real estate
presents an especially good choice. Most people
have some experience with real estate -- usually
the purchase of their house -- and it is relatively
easy to understand. Real estate is tangible.
You can see it, touch it, change it, and use
it every day. In addition, real estate can be
a good source of cash flow when you rent it.
In fact, if you can get a tenant to cover your
mortgage, you are in great shape. It's like free
equity! Lastly, the taxes on the rents can be
offset by your mortgage interest and depreciation
-- both of which are great tax deductions against
real estate income. And, most importantly, as
compared to many investments, you are the one
in charge of controlling the future of your investment.
Market dynamics affect rents and value, of course.
Yet, making a wise choice in the initial purchase,
managing the property well, and selling at the
right time can ensure excellent gains. So, let's
say you decide to invest in.... |
