With all the stories of people making tremendous amounts of money in real estate it’s no wonder why so many are looking at real estate as an investment vehicle. It offers more security than the stock market, provides great potential returns, offers tax benefits and let’s not forget; it sounds cool to be ‘in real estate’. Everybody can buy and sell stocks from their phone or computer these days. But real estate, now that’s something else.
One of the challenges that many are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say “Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can’t afford to!” The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That’s where your banker comes in. Let’s face it. Do you know anyone that owns their own home? I mean truly own it? Probably not. Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That’s right, the bank. So if these people can use the bank’s money to buy a house, why can’t you?
Now ‘owning’ your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. You might say “Duh…” But apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind “they don’t have enough money to buy a house.” In reality it would be much cheaper for them to buy!
When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you’re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.
So if you’re thinking about getting started in real estate and you don’t ‘own’ your own house yet… Change it, and get some experience. It’s a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. Whereas the money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. Compare this to people that are paying rent… Their net worth does nothing. However their landlord’s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense… Keep renting. If you would rather build your own capital instead… Buy your own house!
Many home owners have accumulated more money through appreciation of their property than by working a full time job for many years. Now before you go out and buy the first property you lay eyes on, don’t forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack. In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.
About the Author
Jim Mack is an expert on business, health and well being. He regularly contributes articles on these subjects. The Best Investing Tips
Tags: Challenges, First Steps, How Many People, Invest, Investing, Investment Vehicle, Love, Money Down, Money To Buy A House, Monthly Mortgage Payments, Obstacle, People Bank, Pleasure, Real Estate, Real Money, Rent, Renting A Property, Stock Market, Stocks, Toilet
With so many people making tremendous amounts of money in property or real estate it’s no wonder so many are looking at real estate as an investment. It offers more security than the stock market, provides great potential returns, offers tax benefits and it sounds cool to be ‘in real estate’.
One challenge many are faced with is the money to acquire a piece of property. You’ve heard, “I would love to invest in real estate, but I just can’t afford to!” Hardly anyone who buys a piece of real estate has enough money to pay for it. That’s where your banker comes in.
Owning your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. This step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. People rent because in their mind, “they don’t have enough money to buy a house.” In reality it would be much cheaper for them to buy!
When you rent,you’re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. If you own your own home, you would be paying your mortgage. The basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. Interest can be compared to rent. Those dollars are gone and you will never hear from them again. The part of the payment that goes to the principle is money you keep. Every dollar used to pay off the principal is a dollar you put in your own pocket.
So if you’re thinking about getting started in real estate and you don’t ‘own’ your own house yet… Change it, and get some experience. It’s a great first step towards building your capital and it makes more sense financially. There are opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. The money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. People that pay rent… Their net worth does nothing. Their landlord’s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm feeling about making somebody else rich at your own expense… keep renting. To build your own capital … Buy your own house!
Many home owners have accumulated more money through appreciation of their property than by working a full time job for years. Before you go out and buy the first property you see, don’t forget some security measures are in order. As you may or may not know, real estate prices do not always go up. This can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn’t be the first to end up with a house worth considerably less than the mortgage. Make sure to keep some slack. Overall, real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.
About the Author: With many years in the industry of property or real estate, host, Sintilia Miecevole’s site http://www.miraproperty.com will help you with searches from taxes, listings including residential, commercial and land to unclaimed property, vacation, waterfront and much more. Be sure to visit http://www.miraproperty.com for further information.
Tags: Dollar, First Steps, Getting Started In Real Estate, How Many People, Invest, Investing, Investment, Love, Money To Buy A House, Mortgage, Mortgages, Net Worth, One People, Principle Interest, Real Estate One, Real Estate Prices, Real Money, Rent, Renting A Property, Stock Market
If your real estate purchase is costing you more money than it’s earning, it’s a liability. It’s taking money out of your pocket, and putting it in someone elses. From property taxes to maintenance, there’s hundreds of reasons your home might not be a good asset for you - and you may wish to consider renting.
One of the most common and easiest ways to consider your home an asset, is to check if it’s appreciating. Are the value of the homes around yours, or similar to yours increasing faster than you’re spending money to maintain proper ownership over your home? If not, you’re still losing money and better do something to convert it to an asset.
Rent out a suite, a basement suite, a room, whatever. This is a common strategy that is best applied to those with homes within walking distance of a good bus route, or in a town with a strong college/university, which people from all over flock to and are in need of renting space. If you’re investing in properties, making them rental properties is a good way to have them pay for themselves without you doing any work - past the time they pay for themselves, the majority of the rental income is profit: this is a good asset, especially if the home is still appreciating in value.
Don’t have the extra space to rent? Can you call your home part of your job? Whether you’re self employed or not, you need somewhere to live in order to work - if the home is costing you less than it would cost to reasonably rent in the area, it might be totally suitable for you to write off your home as part of your job - in which case it can be recorded in your assets column as part of your living expenses.
Offer a service at your home: be it a gallery of art work, a regular garage sale, etc., etc. If you’re doing this and flipping good coin, there’s a good chance your home will end up paying for itself in terms of being an area for you to provide this service. Again: a good asset, which will be mostly entirely profitable once your home is paid off.
Tags: Art Work, Asset Liability, Assets, Basement Suite, Bus Route, Flock, Gallery Of Art, Garage Sale, Good Chance, Job, Living Expenses, Property Taxes, Real Estate Investing, Rent, Rental Properties, Self Employed, Someone Elses, Spending Money, Strong College, Walking Distance
If your real estate purchase is costing you more money than it’s earning, it’s a liability. It’s taking money out of your pocket, and putting it in someone elses. From property taxes to maintenance, there’s hundreds of reasons your home might not be a good asset for you - and you may wish to consider renting.
One of the most common and easiest ways to consider your home an asset, is to check if it’s appreciating. Are the value of the homes around yours, or similar to yours increasing faster than you’re spending money to maintain proper ownership over your home? If not, you’re still losing money and better do something to convert it to an asset.
Rent out a suite, a basement suite, a room, whatever. This is a common strategy that is best applied to those with homes within walking distance of a good bus route, or in a town with a strong college/university, which people from all over flock to and are in need of renting space. If you’re investing in properties, making them rental properties is a good way to have them pay for themselves without you doing any work - past the time they pay for themselves, the majority of the rental income is profit: this is a good asset, especially if the home is still appreciating in value.
Don’t have the extra space to rent? Can you call your home part of your job? Whether you’re self employed or not, you need somewhere to live in order to work - if the home is costing you less than it would cost to reasonably rent in the area, it might be totally suitable for you to write off your home as part of your job - in which case it can be recorded in your assets column as part of your living expenses.
Offer a service at your home: be it a gallery of art work, a regular garage sale, etc., etc. If you’re doing this and flipping good coin, there’s a good chance your home will end up paying for itself in terms of being an area for you to provide this service. Again: a good asset, which will be mostly entirely profitable once your home is paid off.
Tags: Art Work, Asset Liability, Assets, Basement Suite, Bus Route, Flock, Gallery Of Art, Garage Sale, Good Chance, Job, Living Expenses, Property Taxes, Real Estate Investing, Rent, Rental Properties, Self Employed, Someone Elses, Spending Money, Strong College, Walking Distance
With all the stories of people making tremendous amounts of money in real estate it’s no wonder why so many are looking at real estate as an investment vehicle. It offers more security than the stock market, provides great potential returns, offers tax benefits and let’s not forget; it sounds cool to be ‘in real estate’. Everybody can buy and sell stocks from their phone or computer these days. But real estate, now that’s something else.
One of the challenges that many are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say “Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can’t afford to!” The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That’s where your banker comes in. Let’s face it. Do you know anyone that owns their own home? I mean truly own it? Probably not. Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That’s right, the bank. So if these people can use the bank’s money to buy a house, why can’t you?
Now ‘owning’ your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. You might say “Duh…” But apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind “they don’t have enough money to buy a house.” In reality it would be much cheaper for them to buy!
When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you’re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.
So if you’re thinking about getting started in real estate and you don’t ‘own’ your own house yet… Change it, and get some experience. It’s a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. Whereas the money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. Compare this to people that are paying rent… Their net worth does nothing. However their landlord’s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense… Keep renting. If you would rather build your own capital instead… Buy your own house!
Many home owners have accumulated more money through appreciation of their property than by working a full time job for many years. Now before you go out and buy the first property you lay eyes on, don’t forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack. In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.
About the Author
Jim Mack is an expert on business, health and well being. He regularly contributes articles on these subjects. The Best Investing Tips
Tags: Challenges, First Steps, How Many People, Invest, Investing, Investment Vehicle, Love, Money Down, Money To Buy A House, Monthly Mortgage Payments, Obstacle, People Bank, Pleasure, Real Estate, Real Money, Rent, Renting A Property, Stock Market, Stocks, Toilet
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