Tips In Investing In Real Estate

Before making an investment, it is essential to include the three considerations

  1. Consider on the whole area.
  2. Consider awareness of the area.
  3. Consider the financial factors.

 

Merits of Real Estate Investment:

Real estate values have varied extensively in various areas of the country. Yet many real estate investments have shown above average rates of return, generally greater than the prevailing interest rates charged by mortgage lenders. In assumption, this means the investor can utilize the influence of rented money to invest a real estate purchase and feel comparatively sure that, if held long enough, the asset will yield more money than it cost to finance the purchase.

Real estate offers investors greater control over their investments than do other options such as stocks etc. Real estate investors also are given assured tax advantages.

 

Demerits of Real Estate Investment:

Liquidity refers to how quickly an asset may be converted into cash. For instance, an investor in listed stocks has only a call a stockbroker when funds are needed. The stockbroker sells the stock, and the investor receives the cash. In contract, a real estate investor may have to sell the property at a substantially lower price than desired to ensure a quick sale. Of course, a real estate investor may be able to raise a limited amount of cash by refinancing the property.

Article Source: EzineArticles.com

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