As an investor, you may have heard for years that real estate is a great long-term investment, but you may just now be getting serious about taking advantage of these benefits for yourself. There are pros and cons to all investments, and savvy investors will carefully educate themselves about these before making an investment decision. As you explore real estate investments more comprehensively, you will see precisely why you should consider buying an investment property as a long-term investment. David Milberg is a financial expert in NYC with nearly 3 decades of experience in the finance industry. He is a long-time owner of Milberg Factors, a factoring and finance company with locations in New York, California, and North Carolina.

1. WHY REAL ESTATE IS A GREAT
LONG TERM INVESTMENT
April 4, 2017
As an investor, you may have heard for years that real estate is a great long-term investment, but
you may just now be getting serious about taking advantage of these benefits for yourself. There
are pros and cons to all investments, and savvy investors will carefully educate themselves about
these before making an investment decision. As you explore real estate investments more
comprehensively, you will see precisely why you should consider buying an investment property
as a long-term investment.
LEVERAGE YOUR INVESTMENT
When you purchase other investments, you typically are required to pay the full face-value
amount for the investment. However, with real estate, this is not the case. You can use a real
estate loan to leverage your investment, and you may only have to pay 25 to 30 percent of the
sales price up-front. Your rental payments from your tenants will pay the mortgage off, adding to
your equity with minimal additional contributions required by you. More than that, the full
property value will increase through appreciation rather than only by your down payment
amount.
OBTAIN REGULAR CASH FLOW
Many people love to purchase dividend stocks because they can increase in value while also
throwing off income. Rental real estate is the same way. You can research your real estate
market to learn more about rental rates in your area in comparison to property sales prices. When

2. you make a large enough down payment on the property and when the loan payment is
reasonably, you can enjoy a relatively stable stream of income from your qualified tenants. You
can also increase rents periodically based on the market to increase your monthly return. While
you can enjoy regular profits from rental income, you typical can enjoy a healthy return when
you sale the property years from now as well.
INSURE AGAINST YOUR RISKS
There are risks associated with buying real estate. For example, a major storm could tear the roof
off, or there could be a devastating fire. Real estate is the only type of investment that you can
purchase insurance on. This can drastically reduce the risks associated with real estate investing.
More than that, your insurance premium is an operating expense that is deductible on your tax
return.
TAKE ADVANTAGE OF TAX BENEFITS
In fact, any operating expenses on the property are tax deductible. This includes your mortgage
interest, your property taxes, utilities, lawn care, repair and maintenance costs and more. In
addition, you can deduct depreciation for further financial benefit. These tax advantages allow
you to dramatically offset the tax burden associated with the monthly rental income that the
property generates.
It can seem stressful to become a real estate investor, but many investors love the benefits of this
type of investment and eventually purchase additional properties to grow their portfolio. Keep in
mind that you can hire a property manager to handle the daily operation of the property while
you manage it from an investment standpoint. Take time to learn more about your real estate
market today to determine if this is the right financial move for you to make.
David Milberg is a financial expert in NYC with nearly 3 decades of experience in the finance
industry. He is a long-time owner of Milberg Factors, a factoring and finance company with
locations in New York, California, and North Carolina.