Do you know what motivates investors? See if any of these items are what pushes your hot buttons . . .
1) Positive Cash Flow -- Investment in income-producing properties often generates an income strean that can be used to fund different needs, such as retirement.
2) Tax Advantages -- As a result of deferred taxation, the after-tax return on commercial real estate typically is greater than an alternative investment with a comparable before-tax yield. The cost-recovery deduction (depreciation) normally defers -- and saves -- taxes, an effect that is magnified by debt financing.
3) Appreciation -- In addition to the periodic cash flows, the sale (or reversion) cash flow of a property can represent an increase in value.
4) Inflation Hedge -- Real estate investment typically has been an excellent hedge against inflation. And today's headlines show inflation is all around us, from gasoline price spikes to the sharp increase in the cost of groceries.
More "hot button" items for investors coming tomorrow!