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.
Yet, real estate investing is back on the upswing. Why do you ask? Because property values have dropped so low that the numbers make sense again. Housing prices in many cities and states have dropped 20%, 30%, 40% and even as high as 50% in some hard hit areas. This drop in price has made the homes more affordable. The government has also stepped in to help new home buyers purchase these homes. As well as discouraged "bad behavior" on the part of the speculators.
In this recession, how can one benefit from real estate investing? Let's do a bit of the math. 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, assuming you can rent that property out for $900 monthly. A cash flow positive investment is more visible now.
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.
Real estate investing should be taken seriously. To help you keep up with what's up and about real estate investing, a great number of real estate gurus (e.g. Donald Trump, Robert Allen, Carlton Sheets), companies, communities and groups are there. You may want to do a research before following one of them, because scammers are out there too. Just make sure they have been in vesting for many years and followed by many people like you who wants to make money in investing. - 23199
Yet, real estate investing is back on the upswing. Why do you ask? Because property values have dropped so low that the numbers make sense again. Housing prices in many cities and states have dropped 20%, 30%, 40% and even as high as 50% in some hard hit areas. This drop in price has made the homes more affordable. The government has also stepped in to help new home buyers purchase these homes. As well as discouraged "bad behavior" on the part of the speculators.
In this recession, how can one benefit from real estate investing? Let's do a bit of the math. 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, assuming you can rent that property out for $900 monthly. A cash flow positive investment is more visible now.
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.
Real estate investing should be taken seriously. To help you keep up with what's up and about real estate investing, a great number of real estate gurus (e.g. Donald Trump, Robert Allen, Carlton Sheets), companies, communities and groups are there. You may want to do a research before following one of them, because scammers are out there too. Just make sure they have been in vesting for many years and followed by many people like you who wants to make money in investing. - 23199
About the Author:
Darryl Degenhardt, a well-known professional who almost gave up on real estate investing. Darryl, just like real estate investing, is back upswing once again.
posted by X - Men @ 2:06 AM
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