LOS ANGELES, CA / ACCESSWIRE / June 10, 2018 / Any investor knows that any investment they face a number of risks with any financial investment that they make. Seasoned investors will tell you that one of the most significant risks to consider is opportunity risk, that is the risk that the capital you deploy can be better used elsewhere. When deciding on where to invest your money, real estate has a lot of significant factors going for it. Here are six of the advantages of investing in real estate for investors.
Price Appreciation
One of the biggest advantages of investing in real estate is the price appreciation of the property. Price appreciation can come from numerous sources. Real estate tends to increase with inflation (more on that later), but there is often price appreciation associated with an area improving in quality and safety. If you choose a home or other property in an improving area then your real estate investment can rise in price and net you a great property.
Hedge on Inflation Rosk
Certain assets tend to have their value dissipate with inflation. The value of cash you hold and bonds that you own will decrease in value as inflation hits. Other investments are more inflation-resistant like stocks. Overall, however, real estate is one of the most inflation-resistant investments out there. For most people, their rent and living costs are their most significant costs. By owning real estate you can have a significant protection in your portfolio from inflation.
Generating Cash Flow
One of the biggest vantages of owning real estate is that I can generate positive cash flow in the form of rents that are paid to you. Rents can be used to acquire new property and to reduce The debt that you have or to supplement your lifestyle. As you get older, having this alternative source of cash can be a big boom to your financial picture.
Tax Benefits
Real estate provides Its owners with some significant tax breaks. When you sell a property, for example, you will not pay income taxes on the first hundred thousand dollars of appreciation of a personal residence. For any type of real estate property, you can deduct costs including depreciation and reduce your tax burden. Real estate investing, therefore, provides significant tax breaks that other asset classes do not allow investors pier
Controlling Your Asset Direction
Passive investing has its advantages, particularly when you are busy. However, having a lack of control over your assets and their direction can be really difficult to stomach, particularly in down markets. While it can be impossible to control the direction of an investment in a major corporation's stock, real estate provides you with the ability to impact the direction of your asset. For example, you can find better tenants or market the property to increase your cash flow. Alternatively, you can improve the quality of your real estate by improving it on it with a home renovation.
Debt Payoff
Lenders will provide you with cash to finance a real estate purchase. You can use the rental income to pay off the mortgage loan and increase your net worth. Once the real estate loan is paid off you will be richer. Since lenders will lend at affordable interest rates as the loans are secured by the asset value, you can profit significantly from using the loan proceeds to own a significant asset.
WS Communities is a real estate development firm that specializes in the acquisition, entitlement, and development of multifamily and mixed-use properties in Southern California. WS Communities' projects include luxury and affordable residential units with ground floor retail and office spaces located in Santa Monica and Los Angeles, California.
SCOTT WALTER – CEO & PRESIDENT
Scott Walter is an 18-year real estate development and investment veteran and was previously responsible for acquisitions and development at NMS Properties, Inc, as their Executive Vice President. Prior to joining NMS, Mr. Walter spent 11 years with Legacy Partners Residential, Inc. as Vice President of Development & Acquisitions, where he led the acquisition and development of all communities in the Southern California, Nevada, and Arizona markets, and was responsible for all facets of residential operations, acquisitions, development, construction and property management. Before his tenure at Legacy Partners Residential, Inc., Mr. Walter was an Associate with Curtis-Rosenthal, Inc., a real estate consulting and appraisal firm. Mr. Walter holds a Bachelor of Arts degree with an emphasis in Real Estate and Finance from Loyola Marymount University and is a member of the Urban Land Institute (ULI) and the National Multifamily Housing Council (NMHC).
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SOURCE: WS Communities