WHY REAL ESTATE?

Compared the complex world of stocks, futures, derivatives and the hundreds of other investment vehicles, the basic principles of real estate -- mortgage, rental payments, taxes -- are easy to explain and understand. Many property investors start with buying their own home and only when they see their home value increase and their wealth grow, do they take the jump to invest proactively. Keep it simple …. If you do not understand it, do not invest in it!

1

LOW RISK

Stocks can fluctuate +25% to - 25% all in one week! Real estate does not have the volatility. The majority of real estate buyers are homeowners, who are not necessarily buying for the purpose of making money. This protects the housing market from the ups and downs experienced by other asset classes that are only held by investors.

Real estate is backed by “brick and mortar”. You can see it and touch it. Even if the building burnt down, the land still has value. In today’s market, the land is often more valuable than the structure. Stocks and other investments can go to zero.

2

LEVERAGE

Unlike stocks and other investment vehicles you don’t need to come up with 100% of the money. Banks will finance the majority of the purchase price. This borrowing power allows you to benefit from the capital growth of a larger asset than if you had to pay for 100% of the investment yourself.

3

YOUR MONEY GROWS IN MANY WAYS

No matter what your financial aims, real estate will likely be able to accommodate your investment strategy.

  • Positive Cash Flow: as your mortgage gets paid down (principal reduction), and eventually gets paid off, you get a guaranteed future income stream
  • Long Term Capital Growth: as your mortgage gets paid down (principal reduction) your property value increases (appreciation)
  • Generational Wealth: you can pass the property to your children

4

PARTNERS WHO HELP PAY FOR YOUR INVESTMENT

  • The Bank: by giving you the majority of the money for the purchase
  • The Tenant: by paying rent
  • The Government: by giving you tax deductions and tax deferrals for investing in real estate