Real Estate Information |
|
Investing in Real Estate Vehicle for Wealth Building
Real estate is one of the best vehicles of building wealth. Historically real estate has outperformed other asset classes like stocks or bonds, and is reasonably predictable and less volatile. There were times when real estate went down and there were times where it went up but on an average it has given a sizeable annualized return Development report, the price of an average single-family home has gone up from $22,300 in1968 to $206,100 in 2003, an increase of 824% in a span of 25 years There are many ways to invest into real estate. With 100 percent financing options, low interest rates and good credit it's fairly easy to get started. Numerous articles and books have been written about investing in real estate and success stories are a plenty. Here, in a nutshell, are some of the most important reasons for investing in real estate. Appreciation. Traditionally real estate has been viewed as a "buy and hold" type investment vehicle. Real estate has recovered from cyclical declines and regional corrections and it may continue to do so in future, primarily because of tight supply and demand. Land is finite and housing is a necessity. According to the U.S. Census Bureau: the nation's population is projected to increase to 392 million by 2050 - more than a 50 percent increase from the 1990 population size. These factors presents a bright outlook for real estate investors. The fact that land is finite, and population is growing will cause most real property to rebound even if there is a market decline. Properties can be bought and held for appreciation provided one has the staying power. To avoid occasional declines, a smart investor should buy properties below market value by using creative acquisition techniques and realize a gain by quickly turning around and selling for a reasonable profit. Of course, properties bought below market value can be held for cash flow and long-term appreciation as well. Leverage. Leverage in real estate means making money on borrowed money. The power of real estate resides in using "other people's money." One can buy a property with zero down (100 financing) and make a profit upon sale as if it had been paid off entirely. Let's assume you decide to buy a duplex worth $500,000 with 100 financing. Income properties have been appreciating at an average of 7 percent per year. With a 0 percent down your property at the end of the first year is worth $535,000. At the end of the second year, it's worth $572,450. By using leverage or borrowed money to purchase a larger income property, you have increased your profit by $72,450 in just two years. A 14.49 percent return on a borrowed amount of $500,000. This is the power of leverage. Leverage coupled with appreciation can yield high profits. Tax Benefits. There are numerous tax benefits of owning real estate, gains from sale of primary residence up to ($250,000 for single, $500,000 for married filing jointly) is tax-free. IRS allows taking deductions for depreciating real estate assets. Legitimate expenses like interest, depreciation, insurance premiums, management fees, legal fees, repairs etc are all tax deductible. You only pay taxes on net profits. Real estate investing is an extremely rewarding process, but it needs perseverance and knowledge to achieve success. There are several proven techniques to make quick money but the key to success resides in buying properties below market value and selling them at the market or higher market price. Great deals can be found in foreclosures, fixer uppers, distressed properties and auctions etc. Happy Investing! Srini Saripalli is an entrepreneur, direct marketing expert and real estate investor. He is also a business development consultant to Fortune 500 companies. He is based in San Jose, Calif. Srini can be reached at http://www.srinisaripalli.com
MORE RESOURCES: This new digital real estate platform wants to solve Denver’s unrealistic listing prices The Denver Post Jon Stewart benefited by 829% 'overvalue' of his NYC home even as he labels Trump's civil case 'not victimless' New York Post Gisele Bündchen's Houses: A Peek Inside the Supermodel's Real Estate Portfolio Architectural Digest Why S&P Cut Outlook for Five US Regional Banks With Heavy Commercial Real Estate Exposure Investopedia FBI is investigating Eastside real estate firm iCap, lawyers say The Seattle Times Refined Real Estate: 1937 Colonial Broadmoor home lists for $2,595,000 seattlerefined.com Real estate terms and commissions are changing – Cache Valley Daily Cache Valley Daily Welcome to Real Estate Friday! theberkshireedge.com Changes coming to real estate commissions. What does it mean? Wednesday Journal Wylie High School offers new real estate class KTAB - BigCountryHomepage.com Inked: Recent LI real estate deals Long Island Business News Current Real Estate Roundup - March 28, 2024 Nantucket Current MAKING YOUR REAL ESTATE DREAMS A REALITY | Real Estate- Sale/Rent coastalbreezenews.com Cincinnati real estate market: Realtors talk about spring season The Cincinnati Enquirer Kevin O'Leary Says a Coming Real Estate Collapse Will Lead to 'Chaos' — Here's What You Need To Know Yahoo Finance Cervera Real Estate opens Palm Beach, West Palm Beach offices South Florida Agent Magazine Longtime Minneapolis real estate company to bring industrial buildings to Colorado Springs' east side Colorado Springs Gazette Tidwell Group Merges with EisnerAmper, Enhancing Presence in Real Estate Sector - Inside Public Accounting INSIDE Public Accounting Christie's International Real Estate The Laurel Magazine of Highlands NC and Cashiers NC William Means Real Estate Continues as a Leading Firm After 90 Years in Charleston - Charleston Business Charleston Regional Business Real Estate Transactions: March 29, 2024 The Recorder What you need to know about the NAR real estate commission lawsuit? Sarasota Herald-Tribune Opinion | The Nature of the Real-Estate Business The Wall Street Journal Brooklyn real estate fraudster sentenced to prison after swindling victims out of nearly $1M • Brooklyn Paper Brooklyn Paper VIDEO | REAL ESTATE | Sneak peek inside the new Auto Safety Center South in West Bend, Wi washingtoncountyinsider.com See How Commercial Real Estate Deals Are Being Cut As Debts Mount Business Insider Real Estate Report: Economists no longer predict significant reduction in mortgage rates Hawaii News Now The longtime Hamptons home of a late billionaire real estate developer now comes $25M cheaper New York Post SBI, Sumitomo Real Estate trial blockchain solution for property transactions - Ledger Insights Ledger Insights Claremont Hotel bought by Ohana Real Estate from Fairmont Hotel and Richard Blum - San Francisco Business Times The Business Journals Top-selling residential real estate team opens Petaluma office North Bay Business Journal Cape Girardeau voters to decide real estate, property tax levy for police, firefighter salaries KBSI Fox 23 Cape Girardeau News | Paducah News Ministers Smotrich and Regev Booed Off-stage at Eilat Real Estate Conference - Israel News - Haaretz Pending Home Sales Rose 1.6% in February National Association of REALTORS® Providence Area Real Estate Market Bounces Back From Pandemic: Report Cranston, RI Patch REAL ESTATE | The Lofts at Cedar Lake include access to a 245-acre wooded campus washingtoncountyinsider.com Pummeled Blackstone Real Estate Unit Seems Poised for a Revival | Chief Investment Officer Chief Investment Officer The Office Market Is in Turmoil. So Why Are Rents More Expensive? The Wall Street Journal Marin, Solano, Sonoma, Mendocino, Lake commercial real estate transactions: March 28 report North Bay Business Journal Real estate giant Compass to pay $57.5M to settle clams it overcharged US home sellers New York Post Law Firm Real Estate Report Law360 Jon Stewart, the Tribeca Trickster of Real Estate, by Tim Graham Creators Syndicate Most Impactful Real Estate Leaders 2024 - Forbes Lists Forbes Middle East Real Estate Stocks: This Player In Buy Zone Investor's Business Daily Squatters 'claim everything to be theirs,' real estate agent says WPTV News Channel 5 West Palm How a 1st Generation Rancher Named Tom Hendricks Found Success in Real Estate frontporchnewstexas.com Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic The Defiant - DeFi News Synergy Acquires 101 Arch Street in Boston Boston Real Estate Times Suspect in $200K Gwinnett real estate scam arrested The Atlanta Journal Constitution Critical Review: InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) vs. Centerspace (NYSE:CSR) Defense World Another office building to rise within Crescent Fort Worth development The Dallas Morning News |
RELATED ARTICLES
Looking into Buying Mobile Homes? To own a home is one of the dreams every common man cherishes, even from the childhood. With hard work and years of savings, he might be able to build or buy a dwelling for him and his family. Realtors - Self Promote Your Way To Success Okay, so we all can agree - listings are the lifeblood of the real estate industry. And if the keys to selling them arelocation, location and location, then the challenge in getting them is self-promotion. Home Staging: How to Make Your Tract Home Stand Out in the Crowd Home sellers who wish to market their property in development neighborhoods face tough challenges. All the houses look similar. Do I Have To Buy Real Estate Through An Agent? Sometimes when we are very busy professionals and very rich it might be convenient to let an agent do the groundwork for us. Letting them make appointments, drive to the property, roam through house after house sizing them up until they find a few great homes that might be just perfect for us. How Do I Bring Consulting Into My Lease Purchase Business As you are making your cold calls on property, you will run into sellers that are having a hard time selling, however, the numbers just don't work for you to take on the deal. Do you just say, "I can't work with those numbers". Budgeting Your Log Home - Creating a Checklist If you've read my first article, BUDGETING YOUR LOG HOME: Where do you start?, you've got a very basic overview of the process. However, there are still a number of questions I'd like to address. Using Transformation Psychology to Sell Investment Properties Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a doghouse into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits. Guide To Finding The Perfect Central Illinois House Central Illinois is an area rich in cultural activities andbusiness opportunities. The quality of life experienced bythe residents of the numerous close-knit communities issecond to none. What are the Elements in Real Estate? Each element has a specific color associated with it. Because color (light) vibrates and is such a high frequency, it immediately lifts the "energy vibration" in our listings. Budgeting Your Log Home: Where Do You Start? The Log home industry has matured these last many years, but there is still a lot of confusion about how much a log home costs. Naturally, everyone wants to know the cost of the log package; however, the budgeting only starts here. I Already Have an MLS Listing, Why Do I Need an Internet Ad? In today's real estate market, astute buyers are also looking to realize savings by dealing directly with the seller. They use internet search engines and keyword sets (Atlanta real estate advertising, Atlanta for sale by owner, Atlanta FSBO) to locate for sale by owner (FSBO) properties on the web. U.S. Real Estate Sought By Foreign Investors Due to a Weaker Dollar The weak US dollar has been good news for real estate. Taking advantage of the favorable conversion rates, foreign investors are eagerly picking up real estate in major cities across the US. Investment Real Estate Made Easy - Make the Most from Each Investment Dollar When it comes to buying investment real estate, there are many schools of thought on how to get the most out of your money. Some say lease optioning your houses is the best and safest way to go. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Prepare Your House for a Successful Sale Whether you list with an agent or sell on your own, you can ensure a quick sale by proactively preparing your house to be a highly marketable and attractive commodity.Paradigm ShiftDon't wait for the sold sign to get started with packing. As a Realtor, How Do I Attract Listings? Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers. Protective Covenants - Buying A Home In addition to zoning, some properties have covenants recorded at the courthouse that "run with the land." These "protective covenants" can put a serious pinch in your plans for a piece of property. How to Build A Rental Property Money Machine If you are looking for a steady, income-producing investment that isn't dependent on the ups and downs of the stock market, rental property is just the investment you're looking for!As lucrative as owning rental property can be, the wrong property can be a bottomless money pit. You need to know how to go about locating property, finding tenants, managing the rental, and how to make your investment profitable. Thinking About Selling Your Home? Owning a home is the original American dream. It's the old frontier spirit, wanting to claim your own tuft of the New World. Curb Appeal First, lets start with what it is. Curb appeal is quite simply the rate of attractiveness your home projects to viewers from the street. |
home | site map |
© 2006 TIGER MEDIA |