ArticlesReader.com Menu

Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup

Search the articles

Articles Main Categories

Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing

Subscribe

Receive alert message from us when new articles submitted to our site for free.

Syndicate

Related Products

Home::Home & Garden

First Steps In Real Estate Investing

Author : Cedrick Reese

With all the stories of people making tremendous amounts of money in real estate it's no wonder why so many are looking at real estate as an investment vehicle. It offers more security than the stock market, provides great potential returns, offers tax benefits and let's not forget; it sounds cool to be 'in real estate'. Everybody can buy and sell stocks from their phone or computer these days. But real estate, now that's something else.

One of the challenges that many are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say "Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can't afford to!" The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That's where your banker comes in. Let's face it. Do you know anyone that owns their own home? I mean truly own it? Probably not. Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That's right, the bank. So if these people can use the bank's money to buy a house, why can't you?

Now 'owning' your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. You might say "Duh..." But apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind "they don't have enough money to buy a house." In reality it would be much cheaper for them to buy!

When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you're not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.

So if you're thinking about getting started in real estate and you don't 'own' your own house yet... Change it, and get some experience. It's a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. Whereas the money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. Compare this to people that are paying rent... Their net worth does nothing. However their landlord's net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense... Keep renting. If you would rather build your own capital instead... Buy your own house!

Many home owners have accumulated more money through appreciation of their property than by working a full time job for many years. Now before you go out and buy the first property you lay eyes on, don't forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn't be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack. In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.

About the Author: Cedrick Reese is the Webmaster of http://www.Eclectic-Info.com" title="http://www.Eclectic-Info.com" target="_blank">www.Eclectic-Info.com, Start an easy Home-Based Business through Affiliate Marketing and Adsense. Other sites owned are http://www.Your-RealEstateCourses.com" title="http://www.Your-RealEstateCourses.com" target="_blank">www.Your-RealEstateCourses.com and http://www.PremeirHosting.com" title="http://www.PremeirHosting.com" target="_blank">www.PremeirHosting.com

Source: http://www.isnare.com">www.isnare.com

Spam emails More free articles

More related feeds

Book Review: “The Weekend Millionaire’s Secrets to Real Estate ...
You can be a real estate investor if you want to be one. The first step in becoming a part time real estate investor on the weekends is just convincing yourself and your family that you are one. As soon as you decide to start looking at ...

Real Estate Development 101
Real estate development is like baseball, just step up to the plate and swing at the opportunities! Unlike baseball your hits have to come at the beginning! Only the superstars, the Trumphs can afford mistakes! ...

An Introduction to Business Angels
The first step is to look around your region for a venture capital group. Another option is to contact your local chamber of commerce or a private accountant. Lawyers may also be able to point you in the right direction. ...

Nagpur a lucrative property investment destination
Nagpur, famous for its oranges, has successfully emerged as the hub of real estate. The success can be attributed to the over all commercial and residential development of the city. Nagpur, only a milestone behind Mumbai, has attracted ...

Vortex Resources Corp. (VTEX.OB) Signs Agreement Letter, Bartlett ...
Vortex Resources was recently acquired by Emvelco Corp., along with Davy Crockett Gas Co., to reorient Emvelco Corp. away from real estate investment and toward oil and gas exploration. To understand Vortex Energy, one must understand ...

Introduction to Building A phpBay Pro Site
This has worked well for me in the past when I went on an adventure to make $100000 as a real-estate investor in one years time. I kept readers up to date with progress reports that I filled out weekly, and sometimes daily if a lot was ...

Getting Started & Marketing: First things first
Starting out in creative real estate investing is hard. Do not let anyone fool you. It is going to take hard work, dedication and perseverance to get your business off the ground. We see many new investors make the same three mistakes ...

TopInvest.bg Real Estate (search engine marketing) Invest
Real estate investing in Miami, Florida is a full time business where investors are constantly trying to maximize their profits and minimize their risks in other to generate wealth over time. Investing is a verified long term wealth ...

Real Estate Investing FAQ
Real estate investing FAQ is usually a list of all the frequently asked questions about real estate investing from finding a property to selling it. There are many strategies in real estate investing. The first question that most real ...

Focus On One Profitable Task To Create A Viable Business
This is the most complete, detailed, step-by-step system available for becoming a powerful, independent, wealthy real estate investor. You will learn to put your entire business on AUTOPILOT. Automation and systemization is the key to ...

First Steps In Real Estate Investing

Related articles