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Income-Producing Property vs. Other Investments

Leverage Your Investment for a Higher Return

You can generally borrow money to purchase income-property more easily than money to purchase stocks. With $100,000 you could buy, control, and receive income from $100,000 of stock. By contrast, you could get a loan for an income-producing property with a $100,000 down payment and a 90% loan to value ratio. In this case, you would control and receive income from $1,000,000 of income property. If the stocks and the income property both gave a 10% overall return, you would receive $10,000 from the stocks. On the other hand, you would receive $100,000 from the income property. That's the power of a leveraged investment.

Control the Value of Your Investment

If you invest in stocks, bonds, or mutual funds, what will you do to increase their value? Their value is largely beyond your control. Conversely, you can paint, remodel, landscape, or add onto the existing property to increase its value.

Reduce Your Taxable Income Via Depreciation

Depreciation is a way to financially account for business equipment that wears out.  Income-producing property generally includes a depreciable building.  This means that each year you could deduct a certain part of the building's value from your taxable income.  Leveraging your investment with a loan futher increases the tax benefirs because the interest is tax deductible as well.

Invest with Confidence

With 31 years of real estate experience and a proven history of investment success, Jim Martindale is your best resource for finding and acquiring an investment property that will help you reach your financial goals.

Learn more.