Sunday 5 March 2017

Real estate investing Tips


The feasibility of betting one’s financial future on the stock market is simply non-existent, and there are no options to protect oneself from precipitous drops in the market that seem to happen with regularity now. When these financial catastrophes occur, there is a different explanation plied by every supposed financial expert as to the cause of the crash.

However, there is a way to invest for wealth and your future with certainty in spite of the attempts by stock market proponents to delude the public into thinking that gambling is the way to secure these important things. This market is real estate, and in it, you are in control of your own destiny. 

When a property is purchased for rental purposes, you decide to whom you rent. You could screen potential renters yourself, contract with companies that provide this service, or delegate the responsibility to trusted associates. The choice is yours, and your options include selling the property for a profit if the renting situation is less agreeable for you. There is very little actual downside.

When you acquire a property in order to renovate the property for a profitable and quick turnaround, you determine the contractor, the extent of the work and the schedule for completion. If there is some downward movement in the market while performing the upgrades, the property still can be rented until the market improves. Again, these are your options, not some stock market investment analyst. 

So understand that there are very specific ways by which real estate posts significant gains while the stock market slips rapidly and constantly, therefore diversifying your portfolio with real estate is essential for these important reasons.

The unending necessity of shelter


Because of the nefarious lending practices that led to housing crash in 2008, qualifying for a home loan is becoming exceedingly hard. This is even occurring to individuals and families that can easily afford there would be monthly mortgage payments. Additionally, other than the lack of means or qualification, some people simply have no desire to own a property long term, and still others only need a temporary living situation. These factors create a strong demand for real estate with very few exceptions.

Consistent cash flow


If a person only decides to take a one percent return on a $200,000 rental space, this $200,000 investment will remit the investor $24,000 a year, but the same $200,000 in Apple stock would only net $34,000 to its unfortunate investor. Additionally, the house will still be producing this type of return in two decades when Apple may not.

Low volatility

There are sometimes very mild swings in the real estate market, but locally, real estate markets incur positive trends consistently over the long term. Remember, clandestine banks and commodities brokers engineered the 2008 housing crash. It was not indicative of the market at all, and neither are shrinking metropolitan markets like Detroit for example.

Growing population means shrinking space

With an ever expanding population migrating constantly into certain areas, land becomes more valuable in these areas and sometimes, exponentially. The world as a whole still has much space, but the availability of land in popular places like America decreases in the areas into which people are migrating therefore making the rental space in these areas appreciate almost daily.

Leverage

Even with a margin account, an investor is never able to borrow more than 50 percent of the amount of their stock’s current purchase price. This is if the stock is even available for leveraging. However, by utilizing a mortgage on a rental property, the entire value of the property can be leveraged. 

For a real investment into your real present and your real future, protect your portfolio and invest in real estate.