dimanche 23 octobre 2016

Learn About The REITS Through The Real Estate Courses Houston TX

By John Foster


There are several reasons to start investing in properties as already discussed. There are reasons like stability, leverage, capital gains, and constant cash flows among others. These are all good reasons, but have you considered the tax benefits of investing in real estate? You need the Real estate courses Houston TX to fully understand this.

The REITs are unique in very many ways. First, they operate under favorable tax structure. The tax structure in which REITs fall was created with the target being to encourage small investors that are unable to own properties to get into the property market. In such arrangement, the REITs companies collect money from investors. The money is used to buy property (Income REITs or I-REITs) or develop properties (development or D-REITs). The properties into which the REITs can invest in include residential properties, shopping centers, hotels, industrial parks, go-downs, and any other commercial buildings and tracts of lands.

The government policy favors individuals to go into RE and owned properties. The investors are therefore given several incentives, one of which is depreciation. In reality, the property value will likely go "UP" in a period of time. Even with this fact, the investors are allowed to report "loss" in the property value every year.

Home ownership gives you creative control. You can decorate your surroundings. However, you want, and pets are always allowed--if you want them. If you are this type that loves to putter around the house and yard, you will love knowing that the work you do is increasing the value of your home and property and that you will be able to enjoy for as long as you want.

The property market is associated with upward growth most of the time. The properties tend to gain in value with only a few years when the value and prices drop. On the time scale of 15-30 years, the value of the property you own is likely to go up. The loan portion of the property ownership structure also reduces thereby increasing the equity component.

Conservatively, consider a debt-equity ratio of 50-50 when investing in property. There are extreme cases where investors opt for 100% equity. With a good selection of properties and assets included in the portfolio, the returns will be good even in 100% equity structure arrangement.

When you buy stocks, you have to sell the stocks and realize a profit or loss. You pay the tax on the profit you make. This is considerably different in the case of RE investment; you pull in equity in the form of a loan, and this is free of tax. In all this, you don't have to sell the property.

Acquiring tax-lien certificates: These are considered to be esoteric forms of real estate investment. They are not very appropriate, especially in the case where the investor is inexperienced. However, under the right circumstances, with the right person at the right time, this form of investment can generate high returns enough to compensate for all the efforts and the risks involved. Enroll for these courses in Texas for better rewards.




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