What is the profit gained from real estate investment?
When thinking about the return on investment (ROI) from real estate, one must not only look at the numbers on the surface but also consider the leverage effect. Real estate is unique in that you may be able to add value to immediately upon acquisition. Another factor is the tax treatment applied to real estate. It is vital not to overlook these advantages. Also, for other investment vehicles, you must sell the item you have invested into be able to gain any profit from it and of course you will incur a tax liability at that time, however with real estate invest you can expect a steady stream of income from the rents, and by refinancing the property later you can withdraw much, if not all, of your capital without an immediate tax liability and while still maintaining control of the asset. The ideal situation is when you have removed all of your original investment capital while you still own the asset. You will still profit from the asset’s future growth and you are then free to re-inve
