Real Estate Investing
Real Estate Investing Kristie Smith, Carmel Realtor, Indianapolis Homes for Sale,
Real Estate Agent in Fishers, Geist, Noblesville, Westfield, Zionsville and all of Central Indiana
Why invest in Real Estate? With so many
investment avenues available (and with Wall Street riding
a multi-year bull market) it is a legitimate question. There
are numerous places where you can invest your money with little
or no involvement. Why should you put your investment dollars
in something that will:
- Almost certainly take a good bit of your
time
- Force you, if you decide to rent the
property, to deal with tenant problems
- Leave you exposed to possible legal as
well as financial troubles
- Have no guarantee that after your time,
money and effort is spent, that there will be a profit?
Why then, Real Estate? It depends
on whether or not your investment goals are long term or short
term.
Real Estate Investing: The Long Term
In the long term, historically Real Estate
property has shown a consistent growth in value, even when some
other investment choices were less stable. If there is an increase
in value and you are paying down your mortgage balance, its
pretty simple: You increase your equity in the property and
add to your net worth.
The nice thing about it, if you have
purchased the property right and maintained it properly, your
tenants, in effect, make your payments for you!
In addition,
there may be tax advantages available to you when you deal in
a long term Real Estate Investment. Although there are definite
limits to these potential advantages, they can be substantial.
Consult a tax or legal professional to see how your situation
would be affected.
Real Estate Investing: The Short Term
In the short term, Real Estate makes
a great investment simply because the numbers are so large.
It is not like buying a $200 watch and reselling it for $250.
Yes, the return percentage will be high, but you still only
made $50. With Real Estate, a decent rate of return can mean
big profit dollars.
Which is better for you? Read the discussion
on long
term and short term investments.
Also, read about the advantages
& disadvantages of real estate investing.
Need expert help buying, selling
or building a home in the Indianapolis area? Planning to
relocate to Indy? For assistance from Indianapolis' premier
Realtor, simply submit the form below, or if you
prefer, call Kristie Smith at 317-805-7360 (toll free 800-360-5733), or
send an email to Kristie.
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