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Real estate investing

By: F. R. Woodner There are truths about investing and making money. Most people have heard them, or read them in the past, but many of us choose not to believe them, or to not follow the advice that they convey.

* Different investment fads may come and go, but only one form of investment always goes up in value over the long term. That form of investment is real estate.

* While buy-and-hold techniques in the stock market CAN increase in value, it exposes investors to risk. A stock investor may have a portion of his money in a company that has been illegally inflating their income or assets (like Enron). Or they may have their money sunk into a company that isn't prepared for any change in technology or tastes. Such a company will surely go out of business, leaving investors holding onto worthless pieces of paper. How many typewriter ribbons have you bought lately?

* The population of the country is continuing to grow. They all need places to live. Barring an economic disaster, most people will have the money to either buy or rent their own apartment or house. Therefore, demand for real estate will ALWAYS increase. Increased demand ALWAYS means an increase in prices.

* No one is making any more land. And, with the clear need to maintain if not expand our current "green spaces" to help combat pollution and global warming, there soon will be significantly less undeveloped land available for real estate investors to develop. Increased demand ALWAYS means an increase in prices.

Almost anyone can invest in real estate. If you own your own home, you've already started investing in real estate. And that's the easiest way to get started. Repair your finances and buy your own home or apartment instead of renting. The value of the house that you buy will end up being worth for more than you paid once it's time to sell.

After you've bought your own home, if you have extra money available to invest, you can try finding "distressed" houses -- fixer-uppers -- and "flipping" them. Also, the foreclosure market is expanding currently -- if you look hard, you can buy property for pennies on the dollar. You can either resell immediately, or rent out to others and enjoy a steady monthly income.

As with any investment, there is risk in investing in real estate. As we are seeing now, in some areas, housing prices are falling as people are defaulting on their mortgages. But you need to remember that a drop in prices now means a greater profit in the long term.

Learn everything you can before you try and "do your first deal". Plan carefully, get advice from professionals and experts, and you should end up becoming a successful real estate investor. Good luck!

Article Source: http://www.lifeweightloss.com

Fran Woodner is a freelance writer who frequently writes on real estate investing, and personal finances.
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