List Categories | List All Articles | List Articles By Title
Secrets of Making Money from Real Estate - Part 2
Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. So you only really need a small portion of the funds to buy an expensive asset.
High level of control: With real estate you can do things such as write your own terms for the contract, increase the properties value, increase the rent, build, subdivide, negotiate lending terms. Although you have a high level of control with a business, it is a bit more risky. How much can you influence the price of stock? Well, not a lot unless you are within the company.
Capital gains: With real estate you can instantly create wealth and equity by buying the property at a discount. Also the property can appreciate over time. For example,
Growth is 8%. You buy a property for $125,000 with a $12,500 deposit.
First year value: $135,000
$12,500 was turned into a gain of $144,865: over ten years! Just imagine if you had a property in an area of 10% growth!
"Yes, but the value of property can go down too!". True the property market can go down, but if you follow the right investment strategies you wont loose money. It is that true the property market can go down. However if you never sell how will you loose money? You may loose equity at some point but the prices are bound to eventually come up again. Even if the prices are down you are still collecting the rent weekly so there should be no problem.
Cash flow:: The capital gains would be enough of a reason just to invest in real estate. But apart from your keeping your money safe, it can also provide you with a profit. Going back to the previous example,
You have an interest only loan for $112,500. Lets assume the property has a 9% yield and the interest rate is at 5%.
Rent from property per annum:$10,125
- Interest payments per annum: $5,625
- property taxes per annum: $1,000
- Insurance per annum: $600
- Repairs: $200
- Property manager: $1,000
Before tax profit: $1,700
Now whether you loose profit or gain profit at this point depends on where you live and the tax laws. For example in New Zealand from this point you could claim depreciation of building and chattels and make more profit after tax. You may also receive a tax break on the interest you pay on your loan. However even if you were taxed on the $1,700 you would still make money.
Insurance:: How much would it cost to insure a business? The premiums would be HUGE! On the other hand, how much does it cost to insure a property, not a lot. Even if natural disaster occurred, with the right insurance plan you wouldn't loose money.
Demand:: Home ownership is decreasing throughout the world, therefore it is more common for people to rent properties today then ever before. This will work in your favor because if demand is increasing for rental properties, prices for rent will go up.
To sum it up using out example:: You have made a deposit of $12,500 to buy you a $125,000 asset which, is becoming more in demand, in ten years can increase to $268,865 giving you equity along with a passive income of $1,700 per year!
This article was written by John Whiteside. The original article can be found here http://www.use-your-equity.com/realestateinvesting.html . Use-Your-Equity can show you how to create value in your home, then show you how to use the newly created equity to make money. http://www.use-your-equity.com for more information.
Real Estate Feasibility Study (Cost Side) - $1.2 Billion Developer Tells You How To Do One
There are two sides to real estate development feasibility study: The Cost Side & The Income Side.I am going to concentrate in this article on The Cost Side.
Investment Real Estate: An Inexpensive Way To Get Started
If you are considering getting involved in investment real estate, let me offer some of the amazing information available in my wealth-building system, Winning the Mortgage Game. In several parts of my system, I outline a strategy for getting started in investing in real estate, without being a landlord.
How to Build a Real Estate Investing Power Team
As you continue to read about real estate investing, you will no doubt come across the term 'power team'. What is this 'power team'? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible.
Land Subdivision - $1.2 Billion Dollar Developer Tells You How To Do It
Land subdivision is a bit like helping Mom slice up her beautiful Apple Pie; it's all so easy, when, like Mom, you've done it a few times. So let's see if we can get the ingredients for a land subdivision correct so you can do it right first time, OK?Every city or town in the free world has a Town Plan and it comprises, not surprisingly, of plans or maps, usually with lots of different colors all over them, but also lots of words explaining what the colors mean as well as lots of Rules that tell you what you can do with land.
How To Build A Million Pound Property Portfolio
Looking to quickly build a million pound property portfolio? You could try a high risk and speculative technique that has been used over recent years by investors hoping to make big profits from property.The technique relies on re-mortgaging and negotiating good discounts on off-plan property to take a £50,000 deposit and turn it into a million pound property portfolio within a couple of years or less.
Real Estate Investing Myths That Steal Profits From Your Pocket
One of the things that distresses us about our industry is the amount of wrong or incomplete information available to investors. Some myths block what otherwise would be a great deal, while others would have you believe that a bad deal is actually great.
Selling Houses: Cutting Edge Design Tips for Selling
In this article, you're going to discover new techniques for marketing houses, and you'll find that these fresh, new interior design ideas will help sell your home faster, and for a higher price than the competition!Buyers' physical senses respond to a home's design, and what a buyer feels is based upon their psychological reactions to sight, hearing, smell, touch, and even taste. Design Psychology employs new strategies in interior design to entice buyers.
Do You Need to Download a Landlord Inventory On-Line Today?
Do you need to download a Landlord Inventory on-line now? Why is it so important to have a Landlord Inventory?Firstly, if you are a landlord, you need to be prepared. As much as we all like to think we can trust everyone, it is very important that buy to let landlords protect their investment property as thoroughly as possible.
Dubai or not to Buy? A Short Assessment of the Dubai Property Market
Never has there been such an ambitious and creative drive to establish a property market as has been witnessed in Dubai over the past three years. Running short on oil reserves, Dubai's crown prince, Sheikh Mohammed Al Marktoum, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded.
Best Places to Retire
Places to Retire: Popular Doesn't Always Mean "Best"Las Vegas, Nevada; Phoenix and Yuma, Arizona; Las Cruces, New Mexico; and Ocala, Florida-just a few names that rank among America's most popular retirement destinations. Unfortunately, their popularity doesn't necessarily mean that they are especially appropriate choices for astute consumers.
Find Out If There Are Sexual Predators Nearby Before You Buy A Home or Property!
When looking for a new home or property, buyers ask many questions. Typical questions might be about the history of the property, property tax amounts, the school system, proximity to medical facilities, shopping malls, etc.
Maui Realtors: What You Need To Know
Maui is a great place for families of any size. However, before you plan a move to Maui and contact those Maui Realtors, there are some considerations that you should take care of.
Equity is the value of your home minus what you owe on your mortgage. For example, If Joe's home is worth $200,000 and Joe still owes $170,000, then Joe's Equity is $30,000.
Timing Is Everything When It Comes To Buying Homes
The old adage that "timing is everything" especially applies to buying a new home. And trying to be at the right house at the right time and get it for the right price can be tricky.
Choosing Your REALTOR ®
With so many realtors competing for your business, how do you know which one to choose? Here are a few things to consider when choosing a realtor.The most important decision you will make in the sale of your home is the Realtor you choose.
Utah Real Estate
Looking to buy real estate in Utah? The market has changed over the past few years and is going to continue to change over the next few (drastically) and here are a few things you should consider before buying any Utah real estate.First, the Olympics didn't affect the state as much as people thought it would.
From Foreclosure to Forbearance - The Art of Negotiation
As an active real estate investor you probably already know that the most important phase of your investment is when you buy the property. Most of us are getting the bargains in the foreclosure market.
Searching For Maui Beachfront Houses?
Who wouldn't want to move into a Maui beachfront house? From the custom architectural jobs done on many Maui homes, to the beautiful beaches and other natural attractions in Maui, you're bound to find something you will love about Maui beachfront houses. However, like any home buying process, you'll need to make sure several things are in order before you make your move into your new Maui beachfront house.
Planning for Real Estate with Estate Planning
One of the most important considerations you will need to make in regards to your real estate holdings and your estate includes tax planning. If not handled properly, your estate could end up getting hit with significant losses due to taxes after your demise.
10 Top Considerations For Those Buying Property Abroad
Are you one of a growing number of people considering buying a second home in the sun, an idyllic home from home abroad or a lucrative investment property overseas? If so you're not alone! Statistics show that globally we're all on the move with a recent survey by YouGov revealing that 55% of adult Britons were "seriously considering settling in another country" and the British Centre for Future Studies predicting that by 2020 one tenth of the current British population will be living or working abroad!Add to this the fact that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, that over one and a quarter million Brits own second homes in Spain and France already and that the Office for National Statistics in the UK recently revealed that 200,000 Britons go overseas yearly with the intention of remaining for at least twelve months, and you can see that the passion for buying that dream home abroad is universal.But what's fuelling this ever growing interest in the overseas property market?Well, despite reports to the contrary the UK housing market is seemingly ever on the up and those Britons who're acquiring massive levels of equity through their residential property are considering selling up, buying abroad and establishing a pension fund simply on the back of what they have left over from their house sale.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !