Investing

Why Real Estate? Why now?
Even though the Real Estate market is down right now, it's still the one of the safest investments available. Across the world, property values have risen an average of 8% a year for hundreds of years. Of course, there are dips and surges and some areas are more flat than others, but the trend is very constant especially when compared with the stock market or other investment products. Even the value of gold fluctuates more than Real Estate!

One of the unique qualities of Real Estate investing is the idea of leverage. Leverage is a term used when you use other people's money to help you earn more. So, with Real Estate, you bring some money with you when you buy a property but usually a bank brings most of the cash needed to close the deal. This creates great cash-on-cash returns for property investors. A simplified example: Jane Q. Buyer uses $20,000 of her money and $80,000 of the bank's money to buy a home worth $100,000. In her first year of owning it, the property value rises 8% and she finds herself owning a property worth $108,000. Because the amount she owes the bank doesn't change, she's earned $8,000 on her $20,000 investment. That's a 40% cash-on-cash return. This example is somewhat unrealistic because it doesn't consider upkeep, interest, or other costs of ownership, but you get the idea: leverage helps you get wealthy from other people's money. If you don't understand this example, or think it's too unrealistic to be helpful, that's ok! Just remember: there aren't really any bankers advertising to lend you money for investing in the stock market, but it's easy to find one who will lend you money to invest in a house... they know it's a great investment!

Also, there are things you can do yourself to raise the value of your real estate investment (fix up the bathroom, do some landscaping, etc.), but there isn't much you can do to raise the value of a company's stock. These are just some of the reasons why we're convinced that Real Estate investing is the absolute best way to build long term wealth.

Why Clean Energy?
It has never been a better time to buy a clean energy upgrade for your home. With a weak U.S. Dollar and high prices for fuel sources worldwide, it's never made more sense to make the switch to a local energy supply. By investing in your own energy future, you'll realize savings right from day one. You won't have to worry about rising electricity, gas, oil or coal prices. You can lock in the cost of your energy with the cost of your house and pay it off just like you will your new home. Look on our financing page for a more detailed explanation of how it works.

Valyceum Estates Office: 585-777-4116 | Fax: 585-777-4108
250 Mill Street, Suite 500
Rochester, NY 14614
contact@valyceum.com

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