Real Estate Investing Versus Stocks And Bonds

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Wall Street says real estate has lousy returns; yet, according to New York Times, Wall Street has lost about $4 trillion in the collapse of former A-list companies like Citigroup, AIG, Merrill Lynch and Bear Sterns. Their shares are worthless.
The difference between stocks and bonds and real estate is that people cannot live on shares of stock. Shelter will always be in demand; even if property values drop, you still own something tangible.
There are many reasons why investing in the stock market is a bad idea. Understanding how it works involves a level of education and research many people do not have the time to do. They have to trust someone else to manage their portfolio. Real estate investing is much more manageable.
Real estate has historically appreciated at an average of 4 percent per year on the capital invested. Other benefits of real estate investing come from mortgage leverage, rental income and tax advantages.
When you purchase real estate with a mortgage, cash-on-cash returns are larger, making it a good, long-term investment. People in New England are still living in 300 year old homes; how many stocks are still around from the 1700s?
Stocks and bonds are easy to purchase but there is little security in the investment. The mechanics of buying, holding and selling real estate are not as straightforward. Real estate doesnt do well as a short-term traded asset but it is ideal for the investor to buy and hold. You can use your self-directed IRA to purchase real estate and watch your investment grow as you put it to work as rental property. Improvements to the property are tax deductible and appreciation can be realized at any point from refinancing to selling.
Rich Morgan of HomeVestors works with new and experienced real estate investors. HomeVestors buys ugly houses and sells nice homes. Rather than promoting the ugly home as a real estate agent, HomeVestors buys the home as-is to rescue the seller from an ugly situation. They renovate the home to sell to a real estate investor or home buyer. Learn more at http://wilmingtonnc.homevestors.com/


About the Author:
HomeVestors of America, Inc. has almost 200 franchised offices throughout the United States. Among the company's many accolades, HomeVestors was named to Entrepreneur Magazine's "Franchise 500" list for five consecutive years, Entrepreneur's "Fastest-Growing Franchises" for four consecutive years, and SMU Cox School of Business "Dallas 100" list of fastest-growing private companies based in Dallas for four consecutive years.



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