Tue 27 Mar 2007
Real Estate is one of the oldest forms of investing known to man.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it. This can happen in any part of the country and is not an exceptional case.
As the population keeps growing, land prices continue to rise and it means that Real Estate will continue to offer one of the best investment opportunities. Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.
One of the problems of Real Estate is lack of liquidity.
Liquid assists are those easily converted into cash like stocks or bonds. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor.
Read
A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home. Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.
The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities. It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.
As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits.
Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don’t buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical.
There are always opportunities in Real Estate during good times and bad, but it is up to you to pick and choose only those very best deals, especially during times when it appears that Real Estate values and demand have reached their peak or in times when it is practically impossible for most anyone to get bank loans due to the tight money market or impossible interest rates.
You can make big money in Real Estate.
March 28th, 2007 at 6:47 pm
You know Robin i really enjoy reading your blog! And that’s the kind of post that makes me want to come back here and read more! Really informative, interesting and useful! 🙂
oh and i also like your funny week-end quotes posts hehe
keep it up mate, you’re doing an awesome job!
March 29th, 2007 at 8:29 am
Thanks Jon
At the end of the day if someone benefits from my blog, thats good enough to make my day.
Cheers mate.
June 24th, 2009 at 5:06 am
Thanks for the info mate, just bookmarked.
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