Real Estate Investment Properties
Commercial Property & Commercial Mortgage Loans
Rhode Island & Southeastern Massachusetts
Real Estate Investors
Friday May 24, 2013
Real Estate investing is not only a prerequisite to having a balanced portfolio, it
can also be a rewarding long-term investment. Despite cycles of
lagging and surging values, relative to the nation as a whole, real estate investing has
shown extraordinary gains in house values in the New England region.
might ask how does real estate investing stack up against other investments - for instance
the stock market? A recent article in The New York Times quoted
"In 1980, the Dow Jones Industrial Average was at 830. In 2004,
it ran between 10,000 and 10,500. Rounded off, that's about a 1,100
percent gain. Home prices in New York State over the same period,
by comparison, increased 400 percent, according to federal data.
So on the surface, it looks like you would have done better in the stock
market - however it does not take into account the ability to leverage
your initial housing investment." In other words, you would likely only
put 10% down on the real estate.
are, of course, other factors to consider in comparing housing leverage
and capital gains. Obviously, you have to pay the mortgage each
month over the 24 years. But home buyers receive income-tax benefits because of interest rate and property tax deductions. Also property
investors can depreciate their assets to minimize tax burden.
particularly considerable factor to weigh is the volatility of the investment.
The same article goes on to say that the housing market is nowhere near
that of the stock market in general, and of individual stocks. While
losses are possible in housing, very rarely will you confront a complete
wipe out, which is always possible in the stock market.
Buying property is an investment over which the investor has substantial control.
You can add a bedroom, build a deck, enjoy ongoing restoration projects
and you will be adding value to your investment - you can't paint your
stock or control the people who run IBM. You can even
exercise some influence on the community and the schools by participating
in neighborhood organizations, which also increases value.
Managing real estate
investment properties includes financial,
cash flow, and real property management.
Getting good financing, determining cash flow requirements, and maintaining
the physical building all contribute to the success or failure of a
real estate investment. Register on Home Sales RI / Focus Real Estate Group to access some professional
real estate investment cash flow management spreadsheets and other resources.
makes sense to invest in property. With the guidance of a knowledgeable
real estate and financial consultant, and the assistance of a qualified
property management team, you can steadily grow your investment property
portfolio. Call for more information
on how to make your property work for you.
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