Santa Cruz Good Times

Feb 12th
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Why Real Estate is a Better Investment Than Stocks

spons realestateBy Suzy Rodoni, Real Estate Eight Three One

A recent article from FortuneBuilders, a premier real estate investment education company, said,  “Given that the U.S. market as a whole is just getting warmed up for a new boom, virtually every property sector is set to take off. Analysts are predicting great real estate investing opportunities from coast to coast.”  If you are debating about how to invest your money in 2014, real estate is definitely something to consider. Investing in real estate is largely considered, in general, to be safer than investing than stocks. Below are some of the benefits of investing in real estate:


You have the ability to leverage your purchase: When buying real estate, you have the ability to purchase a $500,000 investment with a 20% down payment.  That allows you to control a $500,000 property with $100,000 while buying $100,000 of stock requires you to invest $100,000. 

You can write off depreciation for investment real estate: One major benefit to investment property owners comes in the form of depreciation write-off.  The IRS allows owners to take a “paper” or tax loss every year based on the loss of value due to physical deterioration.  This allows the property owner to reduce their taxable income by thousands of dollars each year.  In most cases, your asset is increasing in value as you write off those losses.

You can generate passive income from cash flow as rents increase: You can generate a supplemental monthly income by renting out your residential or commercial spaces. As a landlord, you will someday own the property free and clear and use the rental income as part of your retirement plan.

 It’s tangible: You can see, touch and feel your investment, and you have more control over a real estate investment than you do over a stock in a corporation. You, yourself, can take steps to increase its value by deciding what types of improvements you wish to invest in and when you wish to do so. 

 It’s a hedge against inflation Real estate is one of the few assets that react proportionately to inflation. As inflation occurs, housing values go up and rents go up.

Santa Cruz, in particular, offers real estate investment opportunities. UCSC has a student population of almost 17,000 students, many of whom require rental housing. With its beautiful beaches and world famous surf spots, Santa Cruz also has a $513 million tourism industry every year—making vacation rentals a viable option. 

More information on Santa Cruz real estate can be found by logging on to

TAGS: Suzy Rodoni, Real Estate Eight Three One, Santa Cruz, Sales, Stock Market, Home Buying, Home Selling, Real Estate Market