Many financial advisors would advise you that there are four important ways through which you can get return on investment. These are Federal tax benefits, Cash flow, appreciation and leverage of OPM. The question however is that which trade offers all of these advantages. As per Yuval Golan, famous real estate investor ‘ Real estate is the only business that can help you return the highest cash flow and return on investment’.
Four Financial Benefits for Real Estate Investor
- Tax Benefits: Real estate investor, Yuval Golan believes that rental properties offer deduction due to which the income tax on your profit is reduced. Furthermore rental income is considered to be passive income which means that it is not subjected to any self-employment taxes.
- Cash Flow: ‘Beyond a doubt real estate investment may result in increased cash flows, making you a rich man’ says Yuval Golan real estate investor. Cash flow is basically the profit you receive after collecting rent on your property and making all the required payments such as insurance, taxes, mortgage and rent property repairs. Yuval Golan real estate investor gives an interesting example of the benefits of cash flow ‘Imagine that you have invested in real estate property and have claim to10 houses. Every month you receive $130 on each rental house, just imagine the amount of income you will build in a few months’ time’.
- Leveraging other people’s money: When making real estate investments, it is a common practice to borrow money from other people. Yuval Golan real estate investor in Queens New York says ‘That although you get a mortgage from the lenders but you are also granted an extended time period to pay off that mortgage for example 25 years or more’. With a 25 year old fixed rate loan you may buy a number of stocks that might increase in value with the passing years, making you a rich man.
- Appreciation: It is a common fact that real estate prices may go down a lot of times especially when it is off season. Nonetheless it is anticipated that in the coming year’s real estate will definitely increase in value. Therefore by investing in real estate properties, the price of your house will eventually go up over a period of time. Yuval Golan a real estate investor in Queens New York suggests that by buying a home or house in a location that has many attractions and landmarks will certainly appreciate the value of your house in a few years.