The Basics of Real Estate Investing by pcjc1999

VIEWS: 5 PAGES: 4

More Info
									           Brought to you by Real Estate Solutions Co.




  The Basics of
   Real Estate
    Investing


By: Christine Brady

Real Estate Solutions Co.
              Brought to you by Real Estate Solutions Co.

If you are looking in to real estate investing, understanding the basics of
investment properties is essential. The definition of what constitutes
property makes investing in it a whole lot more lucrative. Property is
anything and everything that can be owned, either by an individual or a
group. Real estate property, in particular, is defined as land and all of
the physical and man-made developments that are permanently
associated and attached to it. What does this mean for real estate
investing? Well, it pays to know the basics, since real estate investing is
not to be taken lightly. Real property includes not only the ground
itself and all that is connected to it, but the air above it and the
minerals below it. When you buy property, you are becoming
responsible for the land, trees and mineral rights, if included. All
property not defined as real estate is personal property.



Real estate investing has evolved over time. In the current economy,
more people are able to purchase property in addition to their family
home. People now have the financial means to proceed beyond the
use of real estate for the sole purpose of supplying their family a place
to sleep, play and eat. Now, it is increasingly possible and desirable for
individuals to buy real estate as an investment. Real estate investing
can be a wealth creator and a depository of value that can effectively
convert the results of their strategic efforts into a tangible, profitable,
real property asset.



A real estate investment can be defined as the implementing of
financial resources for the purpose of preserving and increasing capital
and earning a profit. Nearly everyone has made or will make an
investment of some kind or another throughout the course of his or her
life. All for the purpose of accumulating savings and pursuing other
ventures in search of gaining a better quality of life.
             Brought to you by Real Estate Solutions Co.



Frequently, making an investment also involves the setting aside for a
time some present comforts in anticipation of earning future benefits.
 Forgoing instant gratification, while unpleasant, is often necessary in
order to sufficiently accumulate the savings needed to acquire real
estate property. Moreover, money isn't the only component typically
applied to a real estate investment. One's time and effort, referred to
as sweat equity, can also be very much involved.



Here are some advantages of real estate investing:

Investing in real estate is as advantageous and as attractive as investing
in the stock market. I would say it has three times more prospects of
making money than any other business. And that could be a lot more
or a lot less! Having said that, since it is equally guided by the market
forces; you cannot undermine the constant risks involved in the real
estate investing. As with any investment, there are risks. But, as far as
investments go, real estate has historically been safer.

Which brings me to the next point - real estate investments are less
risky!

As compared to other investments, there is less of a loss involved in a
real estate property. I will not get away from the fact that just like any
investment you make; you have the risk of losing it. But, real estate
investments are traditionally considered a stable and rich gainer,
provided if one takes it seriously and with full responsibility. The
reasons for real estate investments becoming less risky primarily relate
to various socio-economic factors, location, market behavior, the
population density of an area; mortgage interest rate stability; good
history of land appreciation, less of inflation and many more. As a rule
              Brought to you by Real Estate Solutions Co.

of thumb, if you have a geographical area where there are plenty of
resources available and low stable mortgage rates, you have good
reason for investing in the real estate market of such a region. On the
contrary, if you have the condo in a place, where high inflation is killing
you, it is far-fetched to even think of investing in its real estate market.

Also on the plus side of real estate investing is the ability to predict the
future - well, not really, but in a way, yes. Buyers have a ton of
resources at their disposal, see buying a house. There are ways to see
what has sold in the area you are looking at - you can look at prices and
where the neighborhood has been for the last few years. So, in a way,
you can look at the data and predict where it is going.



The resources necessary to reap the intended rewards from real estate
investing must be budgeted and planned for in advance. Look at your
time, your money involved and your effort, then you can determine if
real estate investing is something you want to move forward with.
 Keep in mind that the rewards can be substantial, indeed. To best
optimize the use of one's limited resources when investing in real
estate, I highly recommend that you acquire and carefully apply the
expert instruction found on this website. There is a wealth of
information here and you will discover tips you did not know even
existed.

Also be sure to check out our free guide on how to sell a house - see
what home sellers are doing to sell a house.

								
To top