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Real Estate Information |
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Secrets of Making Money from Real Estate - Part 2
Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. So you only really need a small portion of the funds to buy an expensive asset. High level of control: With real estate you can do things such as write your own terms for the contract, increase the properties value, increase the rent, build, subdivide, negotiate lending terms. Although you have a high level of control with a business, it is a bit more risky. How much can you influence the price of stock? Well, not a lot unless you are within the company. Capital gains: With real estate you can instantly create wealth and equity by buying the property at a discount. Also the property can appreciate over time. For example, Growth is 8%. You buy a property for $125,000 with a $12,500 deposit. First year value: $135,000 $12,500 was turned into a gain of $144,865: over ten years! Just imagine if you had a property in an area of 10% growth! "Yes, but the value of property can go down too!". True the property market can go down, but if you follow the right investment strategies you wont loose money. It is that true the property market can go down. However if you never sell how will you loose money? You may loose equity at some point but the prices are bound to eventually come up again. Even if the prices are down you are still collecting the rent weekly so there should be no problem. Cash flow::The capital gains would be enough of a reason just to invest in real estate. But apart from your keeping your money safe, it can also provide you with a profit. Going back to the previous example, You have an interest only loan for $112,500. Lets assume the property has a 9% yield and the interest rate is at 5%. Rent from property per annum:$10,125 ________________________________ - Interest payments per annum: $5,625 - property taxes per annum: $1,000 - Insurance per annum: $600 - Repairs: $200 - Property manager: $1,000 Before tax profit: $1,700 Now whether you loose profit or gain profit at this point depends on where you live and the tax laws. For example in New Zealand from this point you could claim depreciation of building and chattels and make more profit after tax. You may also receive a tax break on the interest you pay on your loan. However even if you were taxed on the $1,700 you would still make money. Insurance:: How much would it cost to insure a business? The premiums would be HUGE! On the other hand, how much does it cost to insure a property, not a lot. Even if natural disaster occurred, with the right insurance plan you wouldn't loose money. Demand:: Home ownership is decreasing throughout the world, therefore it is more common for people to rent properties today then ever before. This will work in your favor because if demand is increasing for rental properties, prices for rent will go up. To sum it up using out example::You have made a deposit of $12,500 to buy you a $125,000 asset which, is becoming more in demand, in ten years can increase to $268,865 giving you equity along with a passive income of $1,700 per year! This article was written by John Whiteside. The original article can be found here http://www.use-your-equity.com/realestateinvesting.html . Use-Your-Equity can show you how to create value in your home, then show you how to use the newly created equity to make money. http://www.use-your-equity.com for more information.
MORE RESOURCES: Couple in California surrogate case also faces two lawsuits over real estate business practices NBC News Altadena’s rough real estate market: Slower sales, lower prices, lottery winner plucking up properties Los Angeles Times Real estate magazine reports Les Wexner as Blue Heron buyer The Martha's Vineyard Times Real estate expert warns socialist mayoral candidate could trigger massive NYC exodus - Fox Business Bedrock flexes its real estate portfolio to grow Detroit's tech ecosystem - Crain's Detroit Business Bedrock flexes its real estate portfolio to grow Detroit's tech ecosystem Crain's Detroit Business Canadian psychologist Jordan Peterson sets up shop in the Valley, records show The Business Journals Office real estate wide open in Denver as vacancy rate hits 36 percent Colorado Public Radio NAR Real Estate Forecast Summit National Association of REALTORS® Vail Valley real estate inventory is on the rise VailDaily.com Real Estate Partners Dollar Tree A New Perspective: Here Comes the Groom | Real Estate Insights Piedmont Exedra Let's Talk Business: June residential real estate sales lagging, heritage grants and more Pueblo Chieftain REAL ESTATE | 5221 Little Cedar Lane in West Bend, Wi | By Emmer Real Estate Group Washington County Insider Dawson County weekly real estate transactions, July 18 Central Nebraska Today State lawmaker joins Westport commercial real estate brokerage as vice president Hartford Business Journal Boston Real Estate Times Unveils 2025 Excellence Award Winners: Honoring the Visionaries Shaping New England’s Future Boston Real Estate Times 5 Essential Tech Tools for Real Estate Agents National Association of REALTORS® Private Credit Surges in 2025 as Real Estate Developers Bypass Banks The World Property Journal Bard College hires real estate advisor and broker to sell Simon’s Rock campus - The Berkshire Edge What's the most expensive property sold in Rhode Island? July 18 real estate transactions The Providence Journal Property management with an owner’s mindset J.P. Morgan EG Real Estate: 8 New & 10 Sold East Greenwich News New York Housing Market Trends 2025: Is the Tide Turning for Buyers? Norada Real Estate Investments Today’s Mortgage Rates: The States Offering Lowest Rates – July 18, 2025 Norada Real Estate Investments Real estate news: Senior apartments in Tustin sell for $83M; Fullerton Metrocenter snares $118M Orange County Register Los Angeles Water & Power commits $100 to real estate debt Pensions & Investments Real Estate Market Report (June) highlandscurrent.org SRS Real Estate Partners Arranges $4.53 Million Ground Lease Sale of Walmart Property in Deltona, FL citybiz Second car crash into downtown Columbus building prompts owner to again seek demolition The Columbus Dispatch Bridgemarq Real Estate Services® Declares Dividend Yahoo Finance Licking County real estate transfers for June 30-July 4 range from $200,000-$14.6 million The Newark Advocate Corcoran McEnearney Announces Evan Lacopo to Lead the Number One Real Estate Office in Alexandria, Virginia Alexandria Living Magazine Moon Becomes Next Real Estate Frontier, NAR Reports Higher Foreign Investment In US Huntsville Business Journal Banner Real Estate Group Breaks Ground on 334-Unit The Faywell Multifamily Development in The Heart MultifamilyBiz Gravelle advises on current real estate market in Grant County Columbia Basin Herald CBRE Announces Strategic Leadership Appointments Across U.S. & Canada Advisory Business Boston Real Estate Times Operation Pawssible: Greenbrier Humane Society gets a boost from local real estate company Mountain Messenger Mapletree Sells Sun Belt Warehouse Portfolio to EQT Real Estate for $241M Commercial Observer GenesisM Breaks Ground on 154,000-Square-Foot Biomanufacturing Facility in Bedford, MA Boston Real Estate Times July Economist Snapshot: What Will the Big Beautiful Bill Mean for Commercial Real Estate and Housing? Urban Land Magazine AGC MA Announces 5th Annual Building Advancement Externship to Bridge Educators with STEM Construction Careers Boston Real Estate Times Home Buyers: Stop Freaking Out After the Home Inspection National Association of REALTORS® Miami-Dade’s self-storage surge a boom for real estate IslanderNews.com Tips on spotting real estate investment opportunities and avoiding risks, from experts at GR Property Group Community Impact Top Stocks for Real Estate Investment Elite AI Stock Forecasts - Massive wealth growth Jammu Links News SRS Real Estate Negotiates $4.5 Million Sale of Walmart-Anchored Property in Metro Orlando Shopping Center Business LOCAL REAL ESTATE TODAY 7.18.25 KQEN News Radio The Pipeline: Commercial real estate roundup for 7.18.25 Richmond BizSense Stage Point Europe Launches Its RWA Token $SPET, Setting it up as a Bridge Between Crypto and Real Estate Morningstar Stonelake Capital sells dozens of industrial buildings across US for $920 million The Business Journals Hunt Companies Acquires Controlling Interest in Carter, Strengthening Real Estate Development Platform Business Wire Drake Real Estate Partners closes largest fund yet after pivoting to institutions Private Equity Real Estate | PERE Vend Leans Into Verticalisation As Real Estate Revenue Grows 11% In Q2 onlinemarketplaces.com Law firm expands real estate practice with economic development heavy hitter - The Business Journals Law firm expands real estate practice with economic development heavy hitter The Business Journals New plans unveiled for Water Street’s second phase Tampa Bay Times CCI Real Estate Obtains $67M in Construction Financing for Mixed-Use Community at University of Georgia REBusinessOnline Real estate sales in Jefferson, Bullitt and Oldham counties for Jan. 2-5, 2025 - The Courier-Journal Real estate sales in Jefferson, Bullitt and Oldham counties for Jan. 2-5, 2025 The Courier-Journal Median price for Greater Boston single-family homes surpass $1 million for the first time Boston.com |
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