Real estate investments have some distinctive benefits that other kinds of investments do not have.
The interest paid on a mortgage is tax deductible, thus allowing the investor to reduce their tax liability while, at the same time, building equity in a property.
When you are the owner of a rental property, the rent you receive will go towards paying down your mortgage. Thus, the investor gains the advantages of rental income, which will compensate for the cost of the mortgage while building equity.
The 1031 Exchange may be used in order to defer the taxable income when it is time to sell the property.
Real estate has historically proven to be a very good long term investment. Properties are limited in number and will continue to be in demand, especially with the slowdown in new construction and the continuing population growth in the San Diego area.
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