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Introduction to Real Estate as an Investment If Purchased Properly
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Jul 17, 2005, 08:18


If purchased properly, real estate is one of the safer investments in our nation. The population is going to continue to increase and people need a place to live. Whether it is renting a property, buying low and selling high, or helping the first time home buyer, there is money to be made in the real estate market.

Real estate, in most parts of our nation, has historically increased by an average of four to five percentage points each year. Someone once said, "Invest in inflation; it is the only thing going up!"

Yes, there are occasional downswings and decreases, but in the majority of cases, the market rate has been increasing over time decade after decade. As long as people need shelter, the trend should continue.

Real estate is also affected by the rate of inflation. Inflation appears to have leveled off in recent years but the trend has been for inflation to increase. The inflation rate should continue to force higher prices for real estate.

In fact, those of us who own real estate may even look forward to inflation increasing. It bumps up the price of the properties we are holding. Even if the market is slightly depressed, there are still great opportunities for making money and profit through real estate investing.

Often it does not come down to what the market is doing but how well armed we are with knowledge and negotiation skills. Knowledge of real estate investing can make you money in almost any market.

Real estate continues to be one of the best tax strategies for most Americans. Individuals can deduct the interest charged on their mortgage payments on their tax returns thus reducing the amount owed. In addition, there are a number of tax advantages for the real estate investor including paper write off, depreciation, and many expenses that can lower the yearly tax bill.

One of the greatest advantages of real estate investing is the power of leveraging your money and investment.

For example, You can tie up a $100,000 asset (property) with only $1,000 of your own money because you will know a few real estate strategies if you seek them out. When the property appreciates, it will appreciate on the $100,000 not on the original investment of $1,000. Therefore, you ‘leverage?the property. You can make an investment even more valuable by having the property rented out. The monthly mortgage payment is being paid by the renter and someone else is paying for your equity growth in the property.

Is this not outstanding! The best use of O.P.M. ‘Other People’s Money? In addition, if you know a few advanced real estate techniques you may be able to finance a great deal of your purchase through O.P.M.

"Money is a terrible master but an excellent servant."- P.T. Barnum
 
John Ray, the famous 17th century author, was known to have written the aphorism, "Money begets money."

In the business world, One saying stands out!

 
"You've got to have money to make money."
 


However, in the real estate business you can acquire property by using many creative strategies with little or no out of pocket.
 
Let's share some strategies fellow investors.




Source: http://www.realestateinvestment.net

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