Is Real Estate The Right Investment Strategy For You?
By Zaithyn Galter
Published 04/22/2009 | Real Estate
Smart investment strategies in real estate can help you earn good bucks. In fact, for quite a long time real estate has been a good source of wealth for several realty investors. But then, like any other business an investor must take judicious and efficient investment decisions to ensure profitable investment. Proper real estate strategies, for instance, under the present situation assists investors to figure out the strategy that can work for them.
Since in real estate business a huge capital is required initially, you must be in a fix deciding on the possibilities and returns. Following are a few convincing facts provided that can help you clear your doubts and worries.
These will list the answers to the whys in your mind as far as real estate investments are concerned:
Cash inflow The property or real estate that you buy may not necessarily start giving you cash returns exceeding the expenses. But if you have a careful strategy in place and map your progress well, the balance will soon tilt in favor of monetary returns, big time!
Leverage The monetary leverage that these kinds of investments allow is huge! If you can get a loan for the principal, buy the estate and flip it over to a potential party, you can have bulging pockets with the difference that you collect. But this benefit has two factors controlling it quality of the estate you are investing in and a loan that isnt too heavy for you to repay, if the deal goes wrong. Risk is involved, but if you are confident enough in your investment capabilities, go forward and take the mantle. The rewards you will reap might exceed your own expectations!
Debt Liquidation method Instead of taking an official loan from the bank, obtain a no money down loan or move into a partnership with other people. Slowly as you repay, your ownership portion increases and after a period, you get a much larger piece of the pie than you had initially bargained for. The success of this strategy is also dependent on the intelligence with which you have made the investment.
Value Appreciation When you make the investment, you should be aware of the possibilities of appreciation of value for the particular estate or property. The more the potential of value appreciation, the better returns you might get on the long run. Apart from external factors such as the enhancement of the quality of neighborhood, access points and others (which you cannot control), you can also help aggravate the physical properties of the estate, which will help you make a better sale when you intend to do so with the real estate.
Tax Benefits Real estate investments has its share of mischievous benefits too! A load of tax avoiding pathways, albeit legitimate ones, are set open by real estate investments. Though this should not be the primary reason for you to take to real estate investments, it wouldnt hurt to have this side-benefit as well.
Michael Selman is an experienced property investor and has been investing for a number of years. He currently works offering strata management services for many properties throughout the Sydney region.