Thread: Real Esate Appreciates Over the Long Term

Originally Posted by Luxury Homes Tampa

Real estate will appreciate over the long term, and do so consistently. Unlike a tech stock or a hot mutual fund, a real estate investment will continue to appreciate.

True enough! Even though during these last few years the values have depreciated, mostly due to over-inflation of the prices due to excessive funds available (the lenders were giving anyone would could walk to the closing tables loans - without much regard to credit risks.) So in reality, the prices are adjusting - like stocks do.

Of course, since the lenders have either failed or otherwise are scared to lend - even to those who would be great credit risks (low) - the funds are not available to the markets, and thus the prices fall further.

Though if you looked at the values over time, like five - ten - twenty years real estate does appreciate.

Originally Posted by Luxury Homes Tampa

Setting yourself up as a real estate investor means you can claim or deduct expenses like property improvement or upkeep to offset your investment income.

Not to mention the depreciation that the government gives you (27.5 years) to write off your purchase, along with any business expenses, such as mileage and office equipment. The government loves us investors!

Originally Posted by Luxury Homes Tampa

You can also defer some of your real estate investment income by using IRAs and 1031 Exchanges. For example, as long as the profits from your real estate investment remain in your IRA, they will be tax-deferred until you buy another. and we get a tax benefit.

Well, as long as you are willing to play the game right. Though, if you refinance your EQ out, that is a tax-free event as well. Only if you plan of selling do you need to worry about capital gains, and then 1031s are good. Using IRAs to shield your capital gains is a bit more complicated, but true you could avoid capital gains, again if you play the game right. Not doing things correctly could put the investor in a world of hurt.

Later!

Real Estate industry is somehow a very good industry. It is uplift through investors and many businessmen around the world for over many years from now and it's great to have that kind of business. The improvement of real estate over years has a high quality of business. Nowadays, many businessman and businesswoman are successful because of a good real estate investment.