Well, real estate, if you know what you are doing, is really predictable. You have to have a strong team in place and in the right places you have to purchase the right properties, so you can confidently guarantee that all your properties will perform well for a certain period of time. You’ll have vacancies and repairs, but these can be held to a minimum if you’ve done your homework. People will always need a place to live and if you buy in prosperous places and people choose to live in those areas, you can confidently predict that your property will always be rentable. news has some nice tips on this.
Expandability – You can find that some properties perform better than others when you begin to purchase land. You will typically buy in the same neighbourhood as your better-performing properties when you start searching for the next home. How many properties you can purchase is not restricted? You would inevitably want to expand to multi-unit or commercial property as your portfolio continues to grow. Instead of making cash flow from one property for $200 months, it immediately becomes $2,000 off one. How much quicker can you achieve your objective?Depreciation – You can depreciate the value of that property on your tax return when you buy and hold real estate. So even though you own an asset that you would most likely appreciate over time the government allows you to depreciate it every year that you own it. If you still work a full-time job, like a lot of investors, you would be really shocked at the amount of money Uncle Sam will refund back to you because you were willing to use the depreciation of your rental assets to cover your job revenue. I am not a CPA now and the deductions are minimal, so be sure to use an accountant who is very familiar with real estate, preferably one who is an investor himself.