Thursday, January 8, 2009

Real Estate Investment

One of the most profit yielding investments today is from real estate investment. The earning potential of a smart real estate investor is extremely high, because real estate value does not typically decrease. When you are looking for a way to ensure your future security or to build a retirement portfolio, real estate investment is a good investment tools. Assuming that a real estate investor invest $10,000 or 10% in a down payment on a property and the real estate investor get bank loan for the remaining of 90%. If the real estate investor earn a 10% return, he will finish with $110,000.

House is one of the best and easier real estate investment you can make. House prices tend to rise over time. Home prices in the U.S. have risen 2.5% to 6.0% a year for the past 20 years. That trend is likely to continue for the next 10 years. So if you buy a home now, you've put your capital in a safe real estate investment where it is likely to grow. Invest in real estate can help you reduce the amount of tax that suppose to pay. You can deduct the interest you pay on your real estate from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your real estate, the rate of interest you pay on it and how long you've held the real estate. As a rule, the newer the real estate, the greater the amount of interest you pay each month and the bigger the tax break. Therefore, recent buyers with young real estate tend to get the greatest benefit.

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