Investing In Real Estate
Once again, real estate investing is a hot topic. I'm sure you still remember how people suddenly want to give up their real estate investments for the last couple of years. But now, it seems that everybody is jumping back in. No wonder about that, now that a lot of real investing group, not to mention all the crazy buying, is done whirling. Indeed, the last two years were the worst for most people.
Real estate investing has leaped forward and finally back upswing. How so? It is because the numbers of property values, that have dropped so low, have started to make sense once more. Tracing back, housing prices have dropped big time, ranging from 20% to 50%, which has made the homes more affordable to acquire. To help new home buyers buy these homes, the "bad behavior" on the part of the speculators was discouraged and the government has also stepped in as well.
Now, how can one benefit from real estate investing in this recession. Think about the numbers. If you can finance a $100,000 mortgage at 6%, your mortgage payment is somewhere in the $600 range. If you add property taxes and insurance, your monthly outlay would probably be around $750. Now, lets say that you can rent that property out for $900 a month. You now have the basis for a cash flow positive investment.
In this simple real estate investing scenario, you can hold onto that property for 10, 20 years and reap great financial benefits. Why could this make sense for people? It works because, outside of general maintenance on the properties, you're getting someone else to pay for your mortgage. And, when it comes time for you to sell, you could be the beneficiary of a big windfall, if property values increase over time.
It's safe to say that real estate investing plans have failed for the last several years. Just like any other plans, the plans of people who bought properties at extraordinarily high values did not fall accordingly. This is because recession happened, and the properties have lost their value. More so, no one could re-finance or carry the loan payments any more.
It could happen to anyone. "It" being the drastic change of fortunes. Not anyone can just go into real estate investing haphazardly. "Location, location, location," an old phrase that is especially true in real estate investing. It's important to make sure to "pencil in" the numbers. If it's convincing that you're going to take a cash flow negative property and hold on for property value increase, think again. Those may never come back again. "Those" being the market.
This is why it's extremely important to know what you are doing in real estate investing. There are several companies, gurus, etc. who purport to tell you how, what, when and how much. Many of the gurus are fly-by-night scammers. They will try to sell you a bill of goods. You should make sure to look at gurus who have been around a while and have a loyal following. Some examples of these people are Donald Trump, Robert Allen or Carlton Sheets. Basically, they've been there, done that. - 23217
Real estate investing has leaped forward and finally back upswing. How so? It is because the numbers of property values, that have dropped so low, have started to make sense once more. Tracing back, housing prices have dropped big time, ranging from 20% to 50%, which has made the homes more affordable to acquire. To help new home buyers buy these homes, the "bad behavior" on the part of the speculators was discouraged and the government has also stepped in as well.
Now, how can one benefit from real estate investing in this recession. Think about the numbers. If you can finance a $100,000 mortgage at 6%, your mortgage payment is somewhere in the $600 range. If you add property taxes and insurance, your monthly outlay would probably be around $750. Now, lets say that you can rent that property out for $900 a month. You now have the basis for a cash flow positive investment.
In this simple real estate investing scenario, you can hold onto that property for 10, 20 years and reap great financial benefits. Why could this make sense for people? It works because, outside of general maintenance on the properties, you're getting someone else to pay for your mortgage. And, when it comes time for you to sell, you could be the beneficiary of a big windfall, if property values increase over time.
It's safe to say that real estate investing plans have failed for the last several years. Just like any other plans, the plans of people who bought properties at extraordinarily high values did not fall accordingly. This is because recession happened, and the properties have lost their value. More so, no one could re-finance or carry the loan payments any more.
It could happen to anyone. "It" being the drastic change of fortunes. Not anyone can just go into real estate investing haphazardly. "Location, location, location," an old phrase that is especially true in real estate investing. It's important to make sure to "pencil in" the numbers. If it's convincing that you're going to take a cash flow negative property and hold on for property value increase, think again. Those may never come back again. "Those" being the market.
This is why it's extremely important to know what you are doing in real estate investing. There are several companies, gurus, etc. who purport to tell you how, what, when and how much. Many of the gurus are fly-by-night scammers. They will try to sell you a bill of goods. You should make sure to look at gurus who have been around a while and have a loyal following. Some examples of these people are Donald Trump, Robert Allen or Carlton Sheets. Basically, they've been there, done that. - 23217
About the Author:
Darryl Degenhardt has just got into real estate investing when market crisis started to happen. He almost dump his real estate investments. He is now a happy man like he used to be, now that his investments are starting to make sense once again.
posted by X - Men @ 1:33 AM
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