San Francisco | Four Advantages of Real Estate Ownership |Mortgage residential and commercial home loans SF

San Francisco | Four Advantages of Real Estate Ownership |Mortgage residential and commercial home loans SF

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.

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.
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.

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.

Powered by Agent San Francisco – SF San Francisco. All rights reserved.© 2012 Copyright by Agent San Francisco™. All rights reserved. Agent San Francisco is an independent real estate brokerage.
“Agent San Francisco real estate brokerage” is an independent real estate brokerage firm with CaBRE – California Bureau of Real Estate Lic #01173770 and Mortgage Loan Originator MLO – NMLS ID: #1203203 & NMLS ID: #1425778 – Agent San Francisco is equal opportunity housing mortgage broker and
real estate agent that abides by all California Bureau of Real Estate rules and regulations. Agent San Francisco Mortgage Loan originators MLO’s and advertising are in compliance with FTC, U.S. Department of Housing & Urban Development (HUD), Regulation Z [12 CFR §1026.24], Reg CaBRE, Mortgage Acts and Practices — Advertising rule, known as Regulation N – [12 Code of Federal Regulation §§1014 et seq.] – The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
Licensed and endorsed under California Bureau of Real Estate. (CaBRE)
CaBRE Broker #01173770
Mortgage Loan Originator (MLO) NMLS ID #1425778
Mortgage Loan Originator NMLS ID #1203203
Searches related to residential home and commercial real estate lenders San Francisco
residential home and commercial real estate loans San Francisco
San Francisco residential home refinance and commercial real estate lenders list
largest residential home refinance and commercial real estate lenders San Francisco
residential home refinance and commercial real estate funding San Francisco
residential home refinance and commercial real estate financing San Francisco
residential home refinance and commercial mortgage lenders San Francisco
residential home refinance and business real estate lenders San Francisco
residential home refinance and private commercial real estate lenders San Francisco
Home purchase loans and refinancing

Agent San Francisco Real Estate SF
Agent San Francisco Real Estate SF


QR Code
Facebooktwitterredditpinterestlinkedintumblrmail
rssyoutubevimeoinstagramflickrfoursquare
Call Now ButtonRealtor/Loans/Notary/LiveScan