29 Aug Real Estate Investing – For Profit’s Sake
The real estate industry may currently be a very unstable market, however, it is a market that will always be around. In RE investing, there are a lot of long term benefits as well as risks that an investor must be aware of before making an investment. Even if the real estate market is always a market that can be taken advantage of – if an investor cannot play by the instability of the market, they will lose money.
RE investing can be beneficial to the point of becoming financially free if the market factors work to your advantage. However, in the case that a market value of a house goes down, an investor must be prepared to lose money or create a plan B that will make the situation turn around. In investing in an apartment, an investor can rely on monthly rental income that can be used to pay for taxes and for the house itself. Unfortunately, in these cases, an investor will also have to deal with people who rent and then cannot pay. An investor will be prone to paying maintenance fees and repair fees just in case a house or apartment unit needs it. While there will be monthly income from the rental, an investor should always consider downsides like maintenance, repair and unwanted situations with the lessees.
Aside from renting out a house or apartment, RE investing can also involve buying a house or a property that can be sold at the right moment or time. This may require a long wait for the investor but if the property is in a prime location, it is likely to appreciate, it will become a property with high market value. For example, if the neighborhood has good schools, or a hospital, it is more likely for people to be interested in buying the house, thus, the investor will benefit from the profit made in selling a high profile property. The problem with these types of investments is that an investor will have to make investments wisely because if the location is not good, there will be no insurance that the market value will rise.