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13 Extra Costs to be Aware of Before Buying a Home
Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, ...
New Hampshire Real Estate – Switzerland Of America
With soaring mountain ranges, New Hampshire is often called the Switzerland of America. Fortunately, New Hampshire real estate prices compare favorably to Switzerland. New Hampshire New Hampshire is a state with beautiful scenery that takes on the full ...
Real Estate - Blessing To The Economy
Real Estate is a real blessing to the economic growth of any country. It contributes about 30% to Indian GDP both directly and directly. The last five years has shown a great rise in the real estate business. Real Estate in places like Chandigarh, ...
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So here are just five quick reasons why I think you should consider building yourself a real estate portfolio.
1) Freedom – By working to create a profitable business from your underlying property assets you can free yourself from the shackles of 9 – 5 employment where your creativity is zapped and your potential overlooked!
In this day and age those who can say that they love their job are the much envied few. For the rest of us the daily grind is simply necessary to keep a roof over our heads, feed and clothe our children and hopefully be able to afford to retire some day.
Does that sound like freedom to you?
I don’t think so!
The creation of a profitable property portfolio will allow you the freedom to make your own business decisions, to work when you wish and to manage your family’s finances more effectively.
2) Leverage – if you place a twenty thousand dollar lump sum into a bank you will earn interest on that figure alone – the interest rate will likely be poor and taxation and inflation will eat away at any gains you make.
Alternatively, by placing twenty thousand dollars into a property worth one hundred thousand dollars and using a bank’s money in the form of a mortgage to leverage up, you make will make the average annual increase on the full value of the property not just on your twenty thousand dollar investment!
3) Profit Twice – with property you can profit once in the form of regular rental income earned and you can profit twice and big time from the average price gains your
property will enjoy each year.
Even during a real estate market down turn when prices stagnate or readjust your property will hold at least the majority of its value before once again attracting positive capital growth when the property market cycle begins to turn to profit again.
4) Consistent Growth – over the last fifty years real estate has doubled in value every seven years. If you average that out that means that property has grown consistently by just over ten percent a year.
5) Passive Income – As your property portfolio grows so the amount of income you generate will increase. You will not be able to stop this growth once it starts because each year your properties will go up in value and regularly you’ll be able to push up rental income!
While you retain ownership of your properties so you will retain ownership of all the income and all of the growth in underlying value – this is a passive income that you can take into retirement and hand on to your children and grandchildren when you’re gone.
A Final Word – Making an investment into real estate is just like making any other form of investment. There are associated risks and past performance is not an indicator of future potential. Furthermore this article does not constitute personal direct advice.
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Real estate: Economic impact in 2011, expectations for 2012VanguardAlitheia Capital Limited, an impact investment firm based in Lagos, noted in a report that by end Q2, real estate transactions and construction borrowing picked up slightly. Sector growth fell (by 0.2%) compared with the corresponding period in 2010. |
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Southwest Florida real estate briefsNaples Daily NewsTo submit personnel announcements, development news or other real estate-related items, e-mail Gloria Kingsbury at realestate@naplesnews.com. Professional organizer and Naples Daily News' "Get Organized" columnist Marla Ottenstein will teach a class ...and more » |
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