Page 9 - PowerPoint Presentation
P. 9
BENEFITS OF
RESIDENTIAL REAL ESTATE
#4
#5
Leverage When Financing Protection against Inflation
Financial institutions are more willing to Residential investment property is one of
lend you money for a residential real estate the only inflation-adjusted asset classes
investment than most any other type of around. Property prices rise with inflation
asset. If you choose to “leverage” your and so do rents (which you typically renew
property by getting a mortgage (loan and rise each year with your tenant
against a property), say a 30-year fixed accordingly)
principle and interest loan, then your
“money out of pocket” is dramatically less
(anywhere from 20% to 50% down
payments are common, depending on
buyer qualifications, instead of 100%).
