total value. With other investment options, such as buying stock, you typically have to pay the full value of the stock when you make the investment.
#4: Tax Advantages, Why not?:
A tax break alone may not be enough of a why to spark your interest in making an investment in real estate. But, it is worth exploring so that you know why these rules exist and how to use them to your advantage. For example, current tax laws allow you to write off common costs like mortgage interest, taxes, insurance, repairs, and more, thus reducing your taxable income. You can also depreciate a home's value over time, ultimately lowering your tax liability. You might even be able to avoid paying taxes when you sell your investment in the property by using an IRS 1031 tax-free exchange, where (subject to rules) proceeds from the sale of one property can be invested tax-free in a similar, new real estate purchase.
These four reasons are just the beginning of why people decide to invest in real estate. There are very few, if any, investments that can provide you with all the benefits that real estate can. It is truly one of the best investment vehicles available.
You should seek the advice and expertise of a financial advisor or real estate agent, especially if you are just starting out. A professional can help you navigate the what, how and when, of investing but, only you can answer the question of why. For this reason, identifying your why is a crucial step in the process. It creates the foundation you need to formulate an effective strategy and invest with purpose.