QUOTE(canreigg @ Mar 29 2012, 09:01 AM)
In real estate investment there are many ways in which you see the superior return on your investment. The investors need to learn these ways that how the real estate investment can increase in value.
In past decade, real estate investment has proved to be an excellent source of profit through the increase of property value with time. It is quite obvious that nobody can predict that what will be the value of property in near future but history shows it always increases, however the trends vary greatly with area. This investment provides rental income cash flow. You can improve the looks in order to get a better price and to increase the profit and also because the trends and styles changes with time and to keep it interesting for buyers. This improvement will definitely help to retain the value of your property.
Inflation that is the main reason of driving up the home construction costs will also become the indirect reason to drive up the rents. Housing demand also increases by population growth which is again another cause of increase in rent. After paying out the mortgage, the increase in equity can be used for other investments and purposes. If the terms and conditions meet the requirements of investors then they can take the equity loans and then use these loans or funds for more investments and other beneficial purposes. As equity can easily be accessed by investor on selling the home so taking loans won’t be a big deal. A properly invested and managed rental property will provide a continuous stream of income in the form of rental payments. History shows these rental payments or in other words this percentage of return on investment increases over time. The real estate investors also have a little bit more control over the risks involved in cash flow. Though there are downturns in real estate rents or property sold prices in some years differently in different areas. In such situations investors have to use some strategy to make the renting property such in which to live will continue to rent and without a corresponding decrease in rent amounts.
Investors must think that there might be the opportunities to buy below market, but there can be other advantages above than the price, that can be the location, structure or anything. These are the basic things what the average investor must consider. The investor should be fortunate enough and have the experience to locate a value-priced property, this is an immediate way to increase your net worth and the value of your investment portfolio.
The principle reduction in your loans is the best advantage of real estate investment in the form when you collect the rent a portion of the rent works to reduce your loan. There is also a tax –reduction benefit when a person is a professional investor who meets certain time requirements or who properly manages his property then he is clearly allowed for the principle deduction in tax from investments.
really cool!! really well written! I agree with everything! And actually i think too that we need to know where we are investing.. i was reading this article: Money Folder - Real State Market investments Worldwide
and they also linked me to Global Property Guide
Is really informative, actually my cousin is helping me and he is also investing in India and Brazil, the top two countries in the list!