weisheng3302: Real Estate - The Ultimate Investment

Real Estate - The Ultimate Investment

Dec 4 2015 at 12:59am

I think you'll agree with me that real estate investment deserves a closer look when according to many sources 90% of the world's richest people made their fortunes in real estate!

So here are some reasons why I think you should consider building yourself a real estate portfolio.

1) Freedom -

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.

Be ready to know a bargain property when you see it. If it truly a bargain it won't be around long. If at all possible I recommend you tour 4 properties a week in the area you a looking in. This will be valuable information about current property values. Realtor.com is an excellent resource also to keep you up on listing inventory.

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) Consistent Growth - over the last forty years real estate has doubled in value every ten years. If you average that out that means that property has grown consistently by just over ten percent a year.

With owning multiple properties you can start your own real estate investment empire! Collecting rent money from more than one property can put you on the fast track to wealth. If you've ever wondered why some people are more michael kors outlet australia successful at this than others, you have to know the answer is how they approach their business.

No matter what you do, never purchase property that is in a bad neighborhood. That just bad for business, period. It really doesn matter how nice the property is. As long as that house is located in a neighborhood that most, if not all, people would consider a threat www.uramet.com.au/ to a person health and security, stay away from it.

4) 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!

Investment properties appreciate as time goes by. This is one great advantage of having real estate as an investment. The michael kors watches australia risks in these investments are low along with gaining big 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.

About the Author - Allen Spencer

I've been a full time Realtor/Investor for over 40 years and if you would like more valuable tips on investing in real estate, please visit my web site www.make-money-in-realestate.net to recieve your FREE ebook.

Real Estate Agents Can Minimize Much michael kors outlet australia Of The Stress In The Va Home Buying Process

The VA home buying system was created by President Franklin D. Roosevelt in 1944. The main function is to eliminate the need for military veterans to have a down payment to purchase a home. Real estate agents are well-informed on the guidelines to apply for and qualify for these loans. Now known as the GI Bill, these loans can be financed at a fixed rate for 15, 20, 25, or 30 year periods.

Veteran's mortgages are available to all individuals who have served the required amount of time in any branch of the US military. The Department of Veterans Affairs guarantees each VA home buying loan. The real estate agent will assist in the search for any single family residence of a veteran's choice. This includes a townhouse or condominium in a VA approved project, and single family homes. An experienced agent can identify these approved properties.

VA home buying loans can also be used to build and improve or remodel a home. They do not have a prepayment penalty which means they can be paid off in advance of the contracted agreed upon time length. They are also assumable, which means a VA qualified purchaser can take over the payments of a previously existing loan of this type.

Real estate agents are knowledgeable about the specifics of these as well as other types of mortgage financing. The other type plans include FHA, conventional, and jumbo loans. Conventional loans are classified as fixed rate for 15, 20, 25, and 30 year terms. The interest rates on these mortgages remain constant for the full term or life of the financing www.uramet.com.au/ period for which it is contracted on the day of closing. Real estate agents will guide the purchaser through the entire purchasing process.

Conventional mortgages also exist in adjustable rate formats which means the interest rate can change at different points during the life of the financing period. These www.uramet.com.au/ changes are based on weekly average yields on US treasuries. These changes are explicitly explained by the real estate agent and mortgage representative. Jumbo fixed rate home financing programs exist for mortgages that will be greater than $333,700. There is a greater risk to the lender with these larger mortgages so they can carry higher interest rates. These rates are fixed for the contracted length of time.

The government backed loans available to civilians are FHA which are available as balloon, construction, bridge and equity, large property, self-employed income, specialty products for lower down payments, credit solution loans for credit issues, and down payment options, among others. Knowledgeable real estate agents can guide a purchaser through any financing process with their expertise or that of other industry professionals. A purchaser can depend on receiving advice during all phases of their home buying process.
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