Investment property loans - Advantages and disadvantages of real estate investments

Advantages:

-. When buying single family homes real estate, you can do one unit at the same time

-. Properties Investment can be consistent with good business experience for those who are not necessarily of

- To qualify for the estate Investment Trust (Reit) for income, shareholders must flow back to at least 90% of their income in dividends. For this reason, Reit gross-plus average annual dividend yield of 6%​​.

- REITs are not as closely associated with the major indices as most industries. As such, they can use the portfolio to provide some much-needed diversification and should help to even out your total income, especially during the losses.

- Reit hard, tangible tenants, such as land and buildings, and often long term, sign the lease. For this reason, REITs tend to see some of the stable society inMarket.

Disadvantages:

- Requires, generally, more "hands-on involvement of other investment opportunities

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- Maintenance and repair takes time, money or both. (I always seem to take more time than expected ).

-. You have increased exposure to legal and financial

-. Your money is tied up in "bricks", and not readily available

- Why only reinvest up to 10% of their annual profits back into their core businessLines each year, REITs tend to grow slower than the average stock on the clips on Wall Street

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- Although the company is currently relatively stable, REITs are not without risk. For example, dividends are not guaranteed and the housing market is vulnerable to cyclical downturns.

- Since you already have a unique tax status in relation to other companies (more specifically, are allowed, deduct dividends paid from taxable income), apoint of view of investors, a two-thirds of all dividends REITs do not pay for the new, lower tax rate of 15% established by Congress last year to qualify. In contrast, the vast majority of dividends paid by non-REITs in this new low rate are taxed.

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