|REAL ESTATE||REAL ESTATE||REAL ESTATE|
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Investing in Real Estate can be a very fulfilling and rewarding experience. Using the power of leverage can multiply money many times over. Unfortunately there is also a degree of risk associated with real estate investing. For many, investing in real estate seems to be dream investment: an opportunity to gain equity and perhaps generate cash flow in a hands-on investment. The late night "infomercial" gurus sell thousands of tapes, books, and seminars to those who dream of the good life brought through investing in real estate. The reality of Real Estate investment, though, may be a bit different. Can Real Estate be an excellent investment, either long term or short term? Absolutely! Does it take a lot of time and work to be successful as a Real Estate investor? Again, absolutely!
In the short term, Real Estate makes a
great investment simply because the numbers are so large. It is not like
buying a $200 watch and reselling it for $250. Yes, the return
percentage will be high, but you still only made $50. With Real Estate,
a decent rate of return can mean big profit dollars.
In the long term, historically Real Estate property has shown a consistent growth in value, even when some other investment choices were less stable. If there is an increase in value and you are paying down your mortgage balance, its pretty simple: Your increase your equity in the property and add to your net worth. The nice thing about it, if you have purchased the property right and maintained it properly, your tenants, in effect, make your payments for you! In addition, there may be tax advantages available to you when you deal in a long term Real Estate Investment. Although there are definite limits to these potential advantages, they can be substantial. Consult a tax or legal professional to see how your situation would be affected.