Triple E Realty
Real Estate is said to
be the source of more fortunes in the United States
than any other. Historically quality real estate has
been a dependable source of income, a great
inflationary hedge and a readily marketable
commodity. The income produced by an investment
property is primarily from two sources. Income from
the use of the property and appreciation in value
In the long term, historically Real Estate property
has shown a consistent growth in value, even when
some other investment choices were less stable. If
there is an increase in value and you are paying
down your mortgage balance, its pretty simple: Your
increase your equity in the property and add to your
net worth. The nice thing about it, if you have
purchased the property right and maintained it
properly, your tenants, in effect, make your
payments for you! In addition, there may be tax
advantages available to you when you deal in a long
term Real Estate Investment. Although there are
definite limits to these potential advantages, they
can be substantial.
Because of the stability of the asset (it does not
move or disappear) and the continuing need for the
product, real estate is readily financiable and
marketable. Furthermore since the benefits of
ownership are relatively constant, real estate tends
to appreciate at least to the extent of inflation.
While real estate is no longer the tax shelter that
it once was, it is still one of the best ways to
build wealth effectively on a tax deferred basis.
Improvements on real property may be depreciated on
a straight line basis over twenty eight years even
though typically the property, if properly
maintained, is appreciating in value. Additionally
maintenance costs are tax deductible. Utilizing 1031
exchanges it is possible to build a considerable
real estate portfolio over a period of time. Proper
estate planning can tax defer capital gains on real
estate across generations.
In the short term, Real Estate makes a great
investment simply because the numbers are so large.
It is not like buying a $200 watch and reselling it
for $250. Yes, the return percentage will be high,
but you still only made $50. With Real Estate, a
decent rate of return can mean big profit dollars.
Capital Holdings Inc.
The following facts
have, in one way or the other, influenced the
unprecedented increase in real estate prices in the
state especially in Southern California:
The most populous
state with 37 million people
Projected to reach 50
million in the next 15-20 years
Every sixth baby is
5th largest economy in
The nationís gateway
to the 3 trillion dollar Pacific-Rim Market,
which is growing by 3 billion dollars/week
Leads the nation on
foreign investment transaction
450,000 jobs created
Southern California is
home to 60% of the stateís population
requires no upkeep
You donít have to be there to tend to an empty
parcel. Unlike apartment buildings or commercial
properties you spend nothing in maintenance. You
donít have to worry about sloppy tenants or unpaid
rent. In fact, the land continuously increases in
value even if you don't see the property.
Land never wears out nor depreciates.
Nothing can destroy the land and since land is a
fixed commodity, its value must continue to rise as
more people move into an area. Detroit can build
more cars. Wall Street can float more stock issues,
but there is only so much land and no more.
You donít need money to acquire land.
Because of the value inherent in the land itself,
CAPITAL HOLDINGS, Inc. will lend up to 90% of the
sales price of the property. With as little as
$1,000, you can control up to $10,000 in land. This
is called leverage. Neither the stock market, nor
banking your funds offer you so much leverage with
such little initial cash outlay.
Land is the original inflation fighter.
A recent article in the U.S. NEWS AND THE WORLD
REPORT states that land values rose at a rate three
times as great as the increase in general price
level over the last ten years. So you pay off your
land with dollars that are increasingly worth less,
which in most cases pushes you ahead of inflationary
trends. But even and in most cases, pushes you ahead
of inflationary trends. You have REAL financial
Land is an excellent tax shelter.
Property taxes and interest charges in most cases
are tax deductible. Yet, at the same time,
undeveloped property taxes are low enough so as not
to be real financial burden.