Points to remember before investing in real estate

Studies show that real estate investing returns an average 10 percent a year equal to the historic return for stocks.

Leveraged investing:

Major advantage of real estate investment is that you can use other’s person’s money like a mortgage lender and renter to make money for yourself. Rental income covers annual mortgage, insurance, property-tax and maintenance costs.

Tangible asset:

Real estate is considered a tangible asset, unlike stocks which is a paper stock certificate. The steadily rising cost of constructing new homes protects and ultimately enhances the value of existing properties. (more…)