Hands On Real Estate Investing

When you decided to learn more about real estate investing, one of the first questions you probably asked yourself is — Why buy real estate?

Whenever you are about to make any type of investment, it is wise to look at your personal goals. Do you have short term, mid term, and long term goals? Once you set your goals, find an investment that meets your goals. Real estate is the type of investment that can meet short term, mid term, and long term goals. A short-term goal may be to increase your monthly income and/or increase your return on investment. You also might be looking for tax breaks to minimize the amount of taxes you pay every year. A mid-term goal might be to pay college tuition for your child in 5 years. If you buy a piece of real estate in the right location, it should appreciate at least 5% per year. In 5 years, you should have a 25% increase in the market value. At that time, you can refinance the mortgage and pull out some of the appreciation to pay college tuition. A long-term goal might be to secure your retirement. Social Security and pension income might not be enough to pay your monthly bills. Rental income increases every year and can help supplement your retirement income. For the beginner real estate investor, it is very important to minimize risk! Therefore, do your research and proceed carefully! For details on how to get started investing in real estate, click here.

The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.