Tonja Demoff - Tonja Demoff will help you achieve greater wealth through real estate.

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How Real Estate Pays Off

By Tonja Demoff | October 24, 2006 | No Comments |

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Filed under: Home Buying, Real Estate Investing

You build wealth from real estate in at least four ways:

  1. The value of your property rises.
  2. You gradually pay off your mortgage loan and increasingly gain equity in your property (which is known as debt reduction).
  3. You can create passive income by renting your properties.
  4. Effective tax strategies protect your wealth.

Your real estate gains value in at least four ways:

  1. Prices rise in the real estate market.
  2. House renovations and neighborhood improvements add to a property’s value.
  3. When interest rates are lowered, debt is reduced. This happens faster with income properties as rents rise.
  4. When interest rates rise, rents go up.

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