Following is a great market commentary, tips for looking for Houston homes for sale and the top five reasons homes beat stocks as an investment.
If you’re looking to make your money work for you by investing it, you may be looking at different stocks and bonds and wondering if the risk is worth the potential end payout.
But there may be a more attractive form of investment that will serve you better and provide maximum yields. That type of investment is real estate. There are many reasons why investing in real estate is better than getting involved in the tricky stock market. Below are just a few of them.
Leverage is the first benefit of owning a home rather than putting your money in the stock market. With stocks, you invest a lot of money into a company and in return, you receive a tiny piece of that company. Buying a home does require a little bit of money such as a down payment up front and monthly payments thereafter but you get to keep the entire thing.
There are also tax benefits that come with home ownership. The government has subsidies available to entice people to buy homes. With a home, you can pay five percent of the home’s value, watch while the home continually appreciates in value, and still pay no capital gain taxes.
There are certain situations where a homeowner can sell the home for $250,000 if they are single and up to $500,000 if they are married and still pay no capital gain taxes. There is no such option in the stock market. You can also claim many homeowner expenses on your yearly tax report such as fixed-rate mortgages, property taxes, interest rates, and depreciation.
When you buy a piece of the stock market, you give your money but you also give up complete control. Your money is with that company whether it fails or is successful and there’s nothing you can do about it. If you are the owner of a home, you can decide how much money to invest in the home with repairs, upgrades, and improvements.
Also when you buy a home, you are choosing a lifestyle for yourself. You can choose the community you live in, where your children will play, a place that is far away from heavy traffic and the type of home that you would like to live in. This goes back to the amount of control that you will have when purchasing a home compared to buying stocks.
The last point to consider is that the home will always maintain value. It may depreciate a little bit and then come back up but, it will always be worth something. Even if there are major disasters, the home insurance that is purchased on the home will be worth something. Compare this to the horror stories that come out every now and then about someone who lost it all in the stock market.
If you’re looking to make your money work for you by investing it, you may be looking at different stocks and bonds and wondering if the risk is worth the potential end payout.
But there may be a more attractive form of investment that will serve you better and provide maximum yields. That type of investment is real estate. There are many reasons why investing in real estate is better than getting involved in the tricky stock market. Below are just a few of them.
Leverage is the first benefit of owning a home rather than putting your money in the stock market. With stocks, you invest a lot of money into a company and in return, you receive a tiny piece of that company. Buying a home does require a little bit of money such as a down payment up front and monthly payments thereafter but you get to keep the entire thing.
There are also tax benefits that come with home ownership. The government has subsidies available to entice people to buy homes. With a home, you can pay five percent of the home’s value, watch while the home continually appreciates in value, and still pay no capital gain taxes.
There are certain situations where a homeowner can sell the home for $250,000 if they are single and up to $500,000 if they are married and still pay no capital gain taxes. There is no such option in the stock market. You can also claim many homeowner expenses on your yearly tax report such as fixed-rate mortgages, property taxes, interest rates, and depreciation.
When you buy a piece of the stock market, you give your money but you also give up complete control. Your money is with that company whether it fails or is successful and there’s nothing you can do about it. If you are the owner of a home, you can decide how much money to invest in the home with repairs, upgrades, and improvements.
Also when you buy a home, you are choosing a lifestyle for yourself. You can choose the community you live in, where your children will play, a place that is far away from heavy traffic and the type of home that you would like to live in. This goes back to the amount of control that you will have when purchasing a home compared to buying stocks.
The last point to consider is that the home will always maintain value. It may depreciate a little bit and then come back up but, it will always be worth something. Even if there are major disasters, the home insurance that is purchased on the home will be worth something. Compare this to the horror stories that come out every now and then about someone who lost it all in the stock market.
Submitted by paige-martin on Tue, 08/26/2008 - 2:41pm.
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