Real Estate Tips from Bob Rich-Times Have Changed

Several years ago, you didn't need to ask, "Why buy real estate?" Investors were seeing 10-20% inflation, so they simply bought, watched the property appreciate and took the tax write-offs allowed. However, in the past several years, inflation has quieted down. As a result of the Tax Reform Act, investors lost many of the write-offs they had under the old tax code.

Today, you should buy investment property on the basis of its economic soundness instead of its tax benefits. Have a plan or goal. Perhaps you want to build an estate, generate extra cash, or provide for your children. You may seek real estate as a way to diversify your investments or as a hedge against future inflation.

Real estate is for the investor who has patience and patient capital. Think long term -- 5-10 years. When inflation increases again (and it will), it will be lot easier to make those payment that are paying off the principal and making your equity grow.

Contact The Rich Company in Washington, North Carolina for your real estate questions and concerns.