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Published: Thursday, 11/2/2006

Despite Cool Market, Investing in Real Estate May Be Worthwhile

(NewsUSA) - With many people believing the real estate market has cooled, some experts and analysts are suggesting if you didn't get in before the boom, there's no use investing now.

Dolf de Roos, a 30-year veteran of real estate investing and New York Times best-selling author, has a different perspective.

The real estate market has cooled off a little bit, but the boom hasn't exactly come to a halt, he says. If purchased properly, some say real estate is one of the safer investments in our nation. The population will likely continue to increase, and people need shelter, whether it's for their home or their business.

Real estate in most parts of the nation has historically increased by an average of 4 to 5 percent each year. There are occasional downswings, but in the majority of cases the market rate has been increasing over time for decades.

"Even if the market is slightly depressed, there are still great opportunities for making money and profit through real estate," says de Roos. "Often it comes down to your knowledge and negotiating skills. Knowledge of real estate investing can make you money in almost any market."

Two advantages of real estate investing are the tax benefits and the ability to leverage your money. Individuals can deduct the interest on their mortgage payments, reducing the tax they owe, while real estate investors can claim depreciation and expenses to lower their taxes.

A well-leveraged real estate investment buys real estate worth many times the down payment. Thus, you benefit from growth of the property total value, not just the original investment. Meanwhile, your tenant pays down the mortgage, essentially buying the investment for you.

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