Rayce Banner offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Is Real Estate Investing Still Evergreen? Author: Rayce Banner Category: Investing, Start Up, Budgeting Word Count: 443 Keywords: real estate investing,investments,reit,building wealth Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
Investing in real estate is another time-tested method for building wealth. Over the generations, real estate owners and investors have enjoyed rates of return, comparable to the stock market. The best place to start with real estate ownership is to buy your own home. The equity, which is the difference between the market value of the home and the loan owed on it, in your home that builds over the years can become a significant part of your net worth. Among other things, this equity can be tapped to help finance other important financial goals such as retirement, college and starting or buying a business. In addition to building wealth through home ownership, you can also consider investing in real estate that you rent out, often referred to as investment property. If you wish to invest directly in real estate, residential housing (such as single-family homes or small multiunit buildings) is a straightforward and attractive investment for most people. Before you venture into real estate investing, be sure that you have sufficient time to devote to it. Also be careful not to sacrifice contributions to taxdeductible retirement accounts in order to own investment real estate.In the early years of rental property ownership, many investors find that their property's expenses exceed its income. This "negative cash flow" can siphon off money that you could otherwise direct into your retirement accounts to earn tax benefits. When selecting real estate for investment purposes, remember that local economic growth is the fuel for demand for housing. In addition to a vibrant and diverse job base, a limited supply of both housing and land on which to build is another factor that you should take into consideration. When you identify potential properties in which you might invest, run the numbers to understand the cash demands of owning the property and the likely profitability. If you don't desire to be a landlord (one of the biggest drawbacks of investment real estate) consider investing in real estate through real estateinvestment trusts. REITs are diversified real estate investment companies that purchase and manage rental real estate for investors. You can invest in REITs either through purchasing them directly on the major stock exchanges or through a real estate mutual fund that invests in numerous REITs. Because REITs tend to pay fairly healthy dividends, it's best to avoid investing in them outside of tax-sheltered retirement accounts during your working years or if you're in a high tax bracket. Most diversified U.S. stock mutual funds invest a small portion of their assets in REITs. If you'd like REIT-focused mutual funds, among better such funds are Fidelity Real Estate, Cohen & Steers Realty Shares and Vanguard REIT Index. Rayce Banner is a freelance writer on financial topics. Check out the learning "game" that has had a huge positive impact on his career direction: http://www.best-online-golf-game.com/cash-flow-game.html ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
