You have seen the headlines, listened to the radio, and it’s just doom and gloom. But is that really it? Not for the real estate investor who by buying, owning, and renting, wants to build long-term capital. This method means you are doing something now that in the future will continue to generate profits. this content offers excellent info on this. For as long as you own the land, investing in real estate now and keeping those properties as rentals would continue to create an income stream. The number of rental properties you will need to accumulate will dictate the amount of money you want to come in every month. The phase will be improved by investing in multi-unit and industrial properties. So here are the top 10 explanations for real estate investment:
Appreciation – This is in my view, the least significant justification for investing in real estate. As we all know, real estate appreciates over time, historically. However, if you’re one of the poor investors who purchased property in California, Florida, Nevada, or one of the other states that had a rocketing appreciation of the sky in the last few years, you might be in a bad way right now. You are potentially stuck with property that you owe more than its value, and the note is not covered by the rent payments. That’s why when I decide to buy a house, I don’t really weigh appreciation into the equation. If I purchase a property and it has a positive cash flow of $200 a month and before selling it, I own it for 10 years, then I have made $24,000, without doing anything else. If you buy right, then when you sell, there will more than certainly be some appreciation. This is like getting your cake and eating it too for me!!!Predictability – How many of you expected the stock market’s collapse or that the economy was going to take a nose dive like that?