|
Investing in real
estate means purchasing a property that is “income-producing”. In
other words, it is not owner-occupied, and can be residential
rental, resorts, professional, industrial, etc. The value of the
property is partly determined by the income and expenses, and
ultimately the net profit.
An investor has a different
focus than the owner-occupied residential buyer. Terms like
appreciation, and property management are a big part of the
equation.
An investor is concerned about
the following factors:
- Return on Investment
- Cash Flow
- Tax Advantages of owning investment property
- Appreciation of the Property
- Management of the Property
Investment real estate requires
involvement of the buyer's Tax Attorney and/or Accountant. Different
scenarios apply to different properties and different purchasers.
It has been proven over the
years, however, that investing in real estate has been the most
stable of all commodities, and particularly during the recent stock
market decline, has been the stabilizing force of our US economy
|