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Well-chosen
real estate provides a range of advantages to disciplined investors.
Control
Direct investment means the investor has control. This ensures that
the asset can be managed to meet the needs of the investor.
Asset
building
Investing in real estate is a tried and true recipe for building
a balanced and well-diversified investment portfolio.
Capital
security
Real estate is a sound hedge for uncertain times-for example, it
has been shown to hold its value during times of high or accelerating
inflation.
Personal
use
Direct investment in real estate means the investor has option to
use the property for his or her own use. This option is particularly
valuable hedge against changing circumstances.
Regular
income
Property can provide investors with a regular and relatively reliable
stream of rental income.
Tax
leverage
Investors can use borrowing-negative gearing-to reduce the tax they
pay and increase their rate of return.
Capital
appreciation
Carefully selected real estate has enjoyed substantial capital gains
over and above inflation. In certain circumstances such gains can
be tax-free.
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