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12200 Ford Road, Dallas, Texas 75234, 12200 Ford Road, Dallas, Texas 75234, Addison, 75001
2145214524
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Appreciation (Property Value Increase)
- Real estate tends to increase in value over time. This appreciation allows investors to sell properties for a higher price than they initially paid, generating capital gains.
- Example: Buying a house in a developing neighborhood and selling it later for a profit as the area grows in popularity.
2. Steady Income (Rental Income)
- Real estate can provide a consistent cash flow through rental income. Owners of residential, commercial, or industrial properties can lease their properties and generate regular monthly or annual income.
- Example: Owning an apartment complex and earning rent from tenants.
3. Tax Benefits
- Real estate investors can enjoy several tax advantages, including deductions for mortgage interest, property depreciation, property management expenses, and property taxes.
- Example: Depreciating a rental property to reduce taxable income.
4. Hedge Against Inflation
- Real estate tends to be a good hedge against inflation because as the cost of living rises, property values and rents generally increase as well. This helps protect the purchasing power of your money.
- Example: During periods of inflation, rents on residential properties typically increase, boosting rental income.
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