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April 26, 2016

Why Investing in Real Estate Is Often Considered a Good Thing

If you are to go by Roosevelt’s statement about real estate investments, you will find that he is right in saying that it is something that cannot be lost, stolen, or taken away, as long as you pay for it in full, that is. 

It is also, according to him, the safest investment to make in the world. That is somewhat debatable these days however, since a lot of countries have seen real estate prices fall at one time or another.

So, if investing in property is not necessarily considered a good thing all the time, why do people still insist that it is the best investment you will ever make? Aside from the truth in the fact that it cannot be stolen or lost, investing in property can actually be very profitable for you, if you know how to play your cards right. If you are getting property as an investment, you should choose wisely and find the right properties to make money from.

In order to make money from real estate, you will need to look into rental properties. These include both residential and commercial ones. If you are new to the real estate investment game, residential properties are your best bet. Those who have been investing in property for some time, and have quite a bit of capital to burn, are those who are suited to commercial property choices.
Aside from renting out property, you can also choose to buy low sell high, and this can be done by carefully finding great pre-selling properties that are being developed in areas that are beginning to grow. You can purchase a number of low cost properties that are still in the planning and pre-selling stage, and wait for the property prices to go up before you sell. You can make quite a profit from this, but only if you choose wisely and are willing to wait 5 to 7 years to earn from your investment.

Another way you can earn from real estate is to get it via installment. You can then rent out your property and use the rental to pay off the balance of the cost of the property. When it is all paid off, and all you really had to shell out for it is the down payment and miscellaneous fees, you can then consider two things – continue renting it out for a set monthly income, or sell it off at a reasonable price. Either way, you still make money out of it.

When property prices go down after a few decades, and you have already made back the money that you spent on the property, you can then sell it off to someone else. This is why real estate investing is often seen as a good thing because you don’t really lose money if you choose the property you invest in wisely. You also protect yourself from losing money if you choose according to return of investment instead of price appreciation when selling.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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