Real Estate ArticlesFour Advantages of Real Estate OwnershipTip! In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table. The following key factors are commonly accepted as the major reasons real estate continues to be a good investment. For the majority of real estate participants, these factors are the most critical issues in a real estate venture. 1.) Real Estate is a Necessity: Real estate is at the very core of human existence. We all have three important basic needs: food, clothing and shelter. Our world continues to expand as more and more people are being born every day. In addition, there continues to be larger migrations of people from rural areas to more populated locations. Therefore, people will always have the need for temporary lodging, permanent shelter and places to conduct business. Buy And Sell Real Estate From Home. One Of Highest Converting Pages In Industry. 2.) Hedge Against Inflation: Inflation is the invisible force eating away at the purchasing power of our dollars. A dollar, however, doesn't buy today what it once used to. It is also evident that the quality of goods our dollars purchase is also diminished. For instance, the McDonald's "Big Mac" has become progressively smaller year after year. Plus, when we purchase a box of our favorite breakfast cereal, the bag inside the box is practically half empty. Real Estate Without Credit Or Cash. Make Big Money In Real Estate Without Cash, Credit Or Partners. From the tenant's perspective, rent seems to go up constantly and anyone on a fixed income may find it difficult to keep up with the cost of living increases. The owner of the property also feels the effects of inflation in the form of increased property related expenses, taxes, utilities and maintenance costs. As property costs rise, owners typically pass these costs on to their tenants in the form of increased rents and fees. Furthermore as inflation increases so do property values; owners will often benefit from the property appreciation. 3.) Production of Income: The most attractive and lucrative reason for owning real estate is in its ability to produce passive income for the property owner. Rent is accruing daily while payments made by the tenants pay down debt balances and produce predictable profits. Once the property is free and clear, the portion of income that was once used to service the debt payments now goes into the owner's pocket. Build a Fortune With Real Estate Foreclosures and Short Sales. Learn A Technique That Only 1% Even Know About And The Other 99% Wish They Did. 4.) Appreciation in Value: Due to inflation, property appreciates in value. Usually, this statement is generally true. While there are no guarantees, if care is taken with regards to timing of the acquisition and trends in the overall marketplace, real estate tends to perform well when inflationary conditions are flat with some moderate expansion. Author Marcus L. Holliman, CCIM is a successful real estate investor and developer and writes articles on the subject of commercial real estate. For more information Metro Commercial Real Estate and Marcus L. Holliman
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