Why Invest in Real Estate

Discussion in 'Articles & Tutorials' started by Felix07Richerd, Nov 18, 2011.

  1. Felix07Richerd

    Felix07Richerd
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    There are some major reasons describes that investing in real estate is one of the best way to accumulate wealth.

    1- The best strategy to make money in this field would be to invest in upcoming cities.

    2- Rental properties normally appreciate in value with inflation.Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments.

    3- In real estate if you make a good deal then you can end up with 10-35% instant equity.

    4- You reduce your mortgage and increase your equity with every mortgage payment made on underlying debt.
     
  2. gclemett

    gclemett
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    There's only one tip for investing in property.

    Buy on value - not emotion

    G
     
  3. PioneerTraining

    PioneerTraining
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    It is always profitable to invest in real Estate.The best way to make money in this regard is to invest in upcoming cities.It would be proved more beneficial but equity must be increased.
     
  4. aman

    aman
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    Most of the 1990's, The Standard & Poors Index posted earning yields of 5% to 6% on average. At the same time, the dividend yields of the S & P were only around 2% or less. Since dividend paying stocks tend to be much less volatile, the gains on the appreciation side would not normally be a significant factor.

    At the same time, bond yields taken as a composite, showed only around 5% returns. Better yields were riskier, while safer bonds returned lower yields.

    During the same time period, real estate investors were realizing much more attractive returns due to the multiple income streams from real estate investment:

    Rental yield - This is the percentage yield from direct rental income, and can be calculated as either gross or net. Experienced investors prefer to calculate the Net Rental Yield (calculation detailed here), which takes the expenses, taxes and other costs into account, and divides by the property value/cost. It could be a negative cash flow, as it doesn't take mortgage payments into account. For this reason, many investors prefer to look at Cash-on-Cash rental yields. The example at the link shows a 6.4% example return on cash invested. Though the investor can purchase and manage for a yield on this single component that exceeds average stock or bond dividend yields, it is only one of the ways in which real estate returns on your investment.
    Appreciation - Rental properties normally appreciate in value with inflation. Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments. This is the second, and a historically proven value component of real estate investment return.
    Inflation is Rent-Friendly - Rents usually increase with inflation, while mortgage payments on the property remain stable. This increases cash flow, with more rent income without increased expense for holding the property. When inflation is up, it can also mean more renters, as the affordability of homes can be negatively impacted by inflation. More renters increases demand, so rents can escalate.
     
  5. patrick0001

    patrick0001
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    It is one of the common way to accumulate wealth, but not really a good idea for those who short of capital.

    Upcoming cities is high return, but at the same time it also high risky. No one know how the project going on.

    Purchase a potential share can end more than 100% return.
     
  6. Krisz Rokk

    Krisz Rokk
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    First: Location is KEY when it comes to buying real estate.
    Second: You make the deal when you purchase real estate (at the beginning), not when you sell.
     
  7. henrynate

    henrynate
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    Because according to reports I'm seeing at sites such as Movoto.com, real estate is about to take off again. Interest rates are low, and, in my opinion, we're never going to see the same mistakes that were made before. I also think that the commercial real estate market is also going to improve, as construction jobs are added again when new home starts go up. Get in at the bottom. That's what my high school economics teacher taught me!

    Plus, Movoto just wrote a story that indicates 40 states are negotiating with banks and lenders to come up with a new foreclosure settlement deal. Talk about great news all around!
     
  8. Mark T

    Mark T
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    Any investments takes time before you really reap back your investments and see all what you had invested for it. For real estate, it takes not only time but a lot of money, research and resources - but this does not assure yet that you success on such investments. It will depend on your decision-making and choosing the right path for your investments with the right people at the right time.
     
  9. foxgeorge

    foxgeorge
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    Real estate is the hottest field these years. Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Buying and selling real estate is a profitable business. Stefan Seuss is a talented person to offer you the solutions for all your specific needs regarding the taxation and asset management. Stefan Seuss offers the support and advice to the international clients around the world.
     
  10. alexjhon558

    alexjhon558
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    hi
    welcome to this forum site , here u can find lots of things , i suggest u for your problem
    you have to contact your friends or any experts related to your problem , sorry but i cant solve your problem .
     
  11. jiefoun

    jiefoun
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    Investing is all about making money over the long term, you expect to profit from your investment decisions as the funds increase in value.
     
  12. kundansingh

    kundansingh
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    while investing in property , your link should be real good:)
     
    #12 kundansingh, Feb 27, 2012
    Last edited: Feb 27, 2012
  13. Iftikhar Anjum

    Iftikhar Anjum
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    Investing in real estate sector has started to boom but still it is not a piece of cake. Not every time you can make money in this sector but yes it is a quite safe way. The best strategy can lead an investor to the top. From the starting of the current year a number of development projects has started every where which gradually increasing the interest of the investors to participate.
     
  14. Felix07Richerd

    Felix07Richerd
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    the most important thing for any business is Profit or can say return of investment, real estate is the sector that will give you high level return but there is risk also, if you have experience than you can easily manage the risk.
     

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