Is Real Estate a Good Investment?

real estate market

Investing in the stock market or real estate used to be a sure bet way to make the most on your money. Either one was a good choice, but with the constant rise and the devastating befalling the stock market lately, would investing in real estate be the better choice?

What are the advantages to investing in Real Estate?

Unlike recent times where real estate had come crashing down, banks put a halt on lending, and houses were being foreclosed left and right.  The real estate market is now back on the rise, slowly but surely, and investing in property today is still a good choice for investment.

Location of a property is the biggest deal maker, or deal breaker.  If you have found a property to buy in an ideal location, you may want to get your offer on the table!  Although the real estate market is still somewhat uncertain, an attractive location will reassure you that you have made a wise decision.

Owing property also gives you a tax advantage.  If the mortgage is lower than the value of the home, interest tax is deductible, and there are the capital assets when the home is sold.

With the younger generation coming into the working world at the time of recession, the stock market is not appealing at all!  These young people today are buying real estate as a way of investing, with the hopes that property values remain above the mortgage value, and keeping in mind that through history, real estate has always been a positive investment.

Getting a good deal on an investment house is on the rise at the present time.  With so many foreclosures in the past couple years, investors can step in and bid pennies on the dollar for most of these homes.

Flipping a house to make cash in a short amount of time can be beneficial as well as sabotaging!  Know the market of the house you are looking at, and be sure to not overimprove the property with repairs and cosmetics.  You want to make money, not lose it!

What are the disadvantages of investing in real estate?

Some disadvantages come with real estate investing as well.  Hidden tax liens and mortgages higher than the value of the property are to name a few.  Be sure you do careful research, you don’t want to end up in foreclosure on your investment!

If looking to invest in a rental property, keep in mind that with today’s economy, many folks are still out of work and cannot afford the rent that people are asking for.  If setting out to invest for rental income, be sure that you can generate the income needed to fulfill your mortgage, and be prepared that the house may sit empty between renters at any given time.

Another thing to keep in mind with a rental income, is to always be prepared for additional expenses for repairs.  You may get the perfect tenant to rent from you, or the biggest nightmare that destroys your home!

Investing in real estate is a smart choice, just keep in mind that there are ups and downs to these investments and some people may have better luck at it than you!

Businesses in the USA, like Pecan Plantation, are profiting from Daniel Holdeman’s posts.  Per his GP account, he functions as the asst. administrator for an online promotion company. D-to-the-H resides in Los Angeles where he is growing his organizational schooling to more suitably look after his wife as well as their 3 youngsters.

Businesses in the USA, like Pecan Plantation, are profiting from Daniel Holdeman’s posts.  Per his GP account, he functions as the asst. administrator for an online promotion company. D-to-the-H resides in Los Angeles where he is growing his organizational schooling to more suitably look after his wife as well as their 3 youngsters.

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