AussieTycoon
11-02-08, 11:17 AM
Financial advisors will always tell you to diversify your portfolio. This means that you should have some stock investments as well as some real estate. You should also have liquid assets, such as a bank account, and solid investments such as bonds.
While this is all sound advice, many people cannot afford to have all of these investments. They cannot afford stock, they can’t even afford to save money. A good percentage of Australians live from paycheck to paycheck spending more than they should and not saving money. Many people have a superannuation through work and depend on that to take them into retirement.
Real estate is one of the few investments you can make that will actually work double for you. Not only, if you invest wisely, will it appreciate in value, but you can actually live in the home. A home is something that you need.
In addition to being an investment that you can actually use, if you live in your investment or rent it out, you can also usually get real estate tax breaks exclusive to homeowners.
If you are renting, you are actually paying someone else’s rent. This is not a wise investment. Although it may seem like a good idea as you don’t have the responsibility of actually owning a home, you are actually tossing your money out the window.
In addition to actually having something to show for your money that you really need, buying a home of your own will also save you money in income taxes as you can write off the interest that you pay to your mortgage company. You can also write off any real estate taxes that you pay. If you are paying rent instead of a mortgage, you are not only paying someone else’s mortgage when you can be paying yourself, you are probably getting soaked when it comes to paying income taxes.
Although buying a home may seem daunting to someone who has never before purchased property, it is well worth the investment. For many people, it is one of the few investments that they make. If you purchase a home and pay it off, you will always have a place to live. As shelter is necessary for the human condition, real estate is a wise and prudent investment.
Do not allow the current state of the market cloud your judgment when it comes to real estate investing. Financial advisors still agree that real estate is an excellent long term investment.
While this is all sound advice, many people cannot afford to have all of these investments. They cannot afford stock, they can’t even afford to save money. A good percentage of Australians live from paycheck to paycheck spending more than they should and not saving money. Many people have a superannuation through work and depend on that to take them into retirement.
Real estate is one of the few investments you can make that will actually work double for you. Not only, if you invest wisely, will it appreciate in value, but you can actually live in the home. A home is something that you need.
In addition to being an investment that you can actually use, if you live in your investment or rent it out, you can also usually get real estate tax breaks exclusive to homeowners.
If you are renting, you are actually paying someone else’s rent. This is not a wise investment. Although it may seem like a good idea as you don’t have the responsibility of actually owning a home, you are actually tossing your money out the window.
In addition to actually having something to show for your money that you really need, buying a home of your own will also save you money in income taxes as you can write off the interest that you pay to your mortgage company. You can also write off any real estate taxes that you pay. If you are paying rent instead of a mortgage, you are not only paying someone else’s mortgage when you can be paying yourself, you are probably getting soaked when it comes to paying income taxes.
Although buying a home may seem daunting to someone who has never before purchased property, it is well worth the investment. For many people, it is one of the few investments that they make. If you purchase a home and pay it off, you will always have a place to live. As shelter is necessary for the human condition, real estate is a wise and prudent investment.
Do not allow the current state of the market cloud your judgment when it comes to real estate investing. Financial advisors still agree that real estate is an excellent long term investment.