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The Advantages and Disadvantages of Investment Properties

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The Advantages and Disadvantages of Investment Properties Powered By Docstoc
					Many people have the eye on investment properties as it definitely looks like a secure
thing to put in the money and utilised for more income. Before you join in to be one
of them, consider the advantages and disadvantages of such action.
  The advantages of investment properties are many. It offers as a long term plan
which could reap some rewards for retirement time. Since housing is something
which hardly decreases in price, this is one good choice for any financial plans that
has a long run in goal. You could rent it out to make a side income from it. Other than
that, it will serve as a positive asset for you. This comes useful when you need to
acquire loan for something as it can be used as a security for getting another house or
car.
  Although you could gain many advantages from it, wrong choice of investment
properties or lack of search and studies may bring you some sort of disadvantages.
There is the problem with liquidity. In trying to sell off the property, it may require
long period of time as you should only accept a price that worth the value. In addition
to it, you face problems when your property is being rented to bad tenants. They could
be irresponsible and not taking good care of the home. Far worse is when they refuse
to pay the rent. Even if you would have come out with the notice and inform them to
leave, there may be more problems in dealing with the disputes and refusal to leave.
Vacancies of the property may also occur when you fail to find tenants and have to
highly fill up the gaps of payments. As the home ages, there are more things to repair
and maintain. It will cost you to come out with more for maintenance.


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