Control. Investors control their positions by controlling their offers. Once an offer is accepted, Return on Investment is deemed dependable based on a documented history of rental income from weekly or nightly rentals.
Pleasure. Surrounded by national forest, deep trench lakes, fresh air, wildlife, world-class skiing, golf, fishing, etc., a property owner has the availability to enjoy the outdoors with clients or the people they love, an element that is completely absent from main-line investments.
Liquidity. Intended as a longer-term “hold” akin to the bond market, real estate offers one unique and occasionally useful attribute: home equity borrowing. In addition, a home asset can be leveraged as collateral for future purchases without drawing equity at all.
Taxes. Countless tax advantages exist among investment property owners. Please consult with a competent advisor, or allow us to refer you to one. For example, capital gains can be deferred indefinitely through a 1031 exchange allowing investors to build meaningful real estate portfolios without experiencing costly “tax events” along the way. This stands as an enormous contrast to stocks. Simply imagine a successful capital gain devoid of taxes and the increased leverage that would bring as a result. This is just one example, albeit a very good one.
Real Asset. A vacation home is much more than a certificate of shares. The value is in the land, the shelter, and the human activity it affords. Much like gold it’s value is recognized throughout the world. In recent years we have seen some of the largest and most established companies of the century fall by the wayside- MCI WorldCom, for instance. And although the central banks have had reasonable success in changing the focus from “mortgage crisis” to “housing crisis,” the real failings are in the banks themselves. With large borrowing on sharp decline, will blue chip stocks continue to perform with decent returns? If so, for how long? An investment property owned outright is GUARANTEED annual dividends.
