AIMWhy should we invest in real estate?

DO NOWWhat are the advantages of investing in real estate?

REAL ESTATE

What is it?The purchase, ownership, management, rental and/or sale of land or property for profit.

REAL ESTATE INVESTING

• Real Estate has been a popular investment for the ordinary investor. There are several reasons why:–Over the long term, it appreciates in value–It’s an investment you can live in–Mortgage interest is tax deductible–When you sell it, tax treatment is favorable–It serves as a hedge against inflation–It can produce income. How?–Even if its value goes down, you can rent it until the value recovers

REAL ESTATE

What are the differences between stock investing and real estate investing?

REAL ESTATE INVESTING

When you sell it, tax treatment is favorable If bought my house for $312,500 It is now worth $500,000Federal Tax Law allows a married couple to use a $500,000

capital gains allowance on real estate purchased as a primary home ($250,000 each person)

If I sold my house today, I would realize a $237,500 gain – and pay no taxes on it! If you had the same amount of gain on a stock investment, you

would have to pay taxes

REAL ESTATE

Income GenerationLet’s say that I decide to retire to Florida but want to keep my NY home as an investment. I can rent it.Benefits:

Mortgage and taxes are partially or totally covered by rental income

Property taxes are still deductible, even though I don’t live there

Rental income increases my taxable income, but I can deduct the expenses of maintaining my “investment” property (including all repairs)

REAL ESTATE

List the qualities you would desire in a piece of land on Mars or another planet such as:

What kind of view of Earth does it have? How big is the property?

1.Write down four additional questions2.Write an ad that advertises this property. Must be at least 3 sentences.

IS SPACE REAL ESTATE A GOOD INVESTMENT?

How do you know whether a house is a good price or not?

Answer: you can check comparable sales – that is sales of similar houses in the neighborhood. All real estate sales are recorded with the local county and

are public records. You can look up the sale price of any property.

Let’s look up the price of your house and your neighbors!

REAL ESTATE