|
|
|
First Time Real Estate Purchase
Nothing can be more exciting & terrifying at the same time than buying your 1st home. Everyone talks about all the advantages of buying real estate such as the tax benefits, appreciation etc. But there are some risks involved and the more knowledge...
Pending Real Estate Bubble? How To Profit In Any Market
With all the talk of a pending real estate bubble or falling sales prices, real estate investors need to guard their money and find new ways to make money. No matter what the market does, you can make money investing in real estate when you know...
The Middle of Nowhere (Can you find it on a map?)
Working from home on websites for international customers has certain occupational hazards if you live out in the middle of nowhere.
Allow me to explain. I pay for my family's daily rations of bread, water and the occasional snow flake (when...
The Property Thief
For the property thief, the decision to commit a crime on an apartment property is a risk versus reward exercise. The risk of committing this crime is the chance of getting caught, losing the property, and possibly their freedom. The reward is the...
The Secret To Marketing Your FSBO Home For Sale
You’re ready to put your home or land (house, townhouse, condo, apartment, farm, ranch, finished lot, raw land, etc.) on the market as a FSBO (for sale by owner). You’ve priced your property appropriately and gotten it ready to show. How are you...
|
|
| |
|
|
|
|
|
|
5 Reasons To Build A Real Estate Property Portfolio
I think you’ll agree with me that real estate investment deserves a closer look when I tell you that according to many sources 90% of the world’s richest people made their fortunes from property!
So here are just five quick reasons why I think you should consider building yourself a real estate portfolio.
1) Freedom – By working to create a profitable business from your underlying property assets you can free yourself from the shackles of 9 – 5 employment where your creativity is zapped and your potential overlooked!
In this day and age those who can say that they love their job are the much envied few. For the rest of us the daily grind is simply necessary to keep a roof over our heads, feed and clothe our children and hopefully be able to afford to retire some day.
Does that sound like freedom to you?
I don’t think so!
The creation of a profitable property portfolio will allow you the freedom to make your own business decisions, to work when you wish and to manage your family’s finances more effectively.
2) Leverage – if you place a twenty thousand dollar lump sum into a bank you will earn interest on that figure alone – the interest rate will likely be poor and taxation and inflation will eat away at any gains you make.
Alternatively, by placing twenty thousand dollars into a property worth one hundred thousand dollars and using a bank’s money in the form of a mortgage to leverage up, you make will make the average annual increase on the full value of the property not just on your twenty thousand dollar investment!
3) Profit Twice – with property you can profit once in the form of regular rental income earned and you can profit twice and big time from the average price gains your
property will enjoy each year.
Even during a real estate market down turn when prices stagnate or readjust your property will hold at least the majority of its value before once again attracting positive capital growth when the property market cycle begins to turn to profit again.
4) Consistent Growth – over the last fifty years real estate has doubled in value every seven years. If you average that out that means that property has grown consistently by just over ten percent a year.
5) Passive Income – As your property portfolio grows so the amount of income you generate will increase. You will not be able to stop this growth once it starts because each year your properties will go up in value and regularly you’ll be able to push up rental income!
While you retain ownership of your properties so you will retain ownership of all the income and all of the growth in underlying value – this is a passive income that you can take into retirement and hand on to your children and grandchildren when you’re gone.
A Final Word – Making an investment into real estate is just like making any other form of investment. There are associated risks and past performance is not an indicator of future potential. Furthermore this article does not constitute personal direct advice.
About the Author: Rhiannon Williamson is a freelance writer whose many articles about international property investing have appeared in publications around the world. Visit her site http://www.AmberLamb.com to read her latest articles.
Source: www.isnare.com
|
|
|
|
|
|