Real Estate a Good Investment or not

Posted by admin | real estate | Friday 14 November 2008 7:00 am

According to Cris fox vice president in one mortgage bank, “you can buy real estate with margin. You cannot do that as far as stocks are concerned. Suppose we buy a house with $1000 of our own money and 100% finance, you will earn equity of $ 48000 on $400000 mortgage. After cutting cost of repair and others you will still be left with a good sum of money. You have to pay 12% of the cost as interest. However if you are resident then the interest is also saved. This cannot happen in stock”. In brief cris fox says that it would be better if you invest in both stocks and real estate and look for a better deal as soon as it strikes the market.

Any way real estate has always been great to invest in. once you buy a property you are quite sure that its price will increase in future. The cost of land never reduced. In fact it always increases. In 2006 the prices rose by 26% for apartment complexes, 21% for industrial properties, 14% for retail properties and 6% for office buildings. This data is according to New York real estate firm.

According to CB Richard Ellis, in Los Angeles the number of real estate property is great not just for sale but for lease too.

Many peoples have started investing in real estate. However it has some risks as well. Real estate market is just like stock market. However real estate investment is not like stock market where you invest blindly on the basis of some speculations. The investment amount in real estate is huge. It is also long term. You should have adequate money to invest and also ready for maintaining the real estate for a longer period of time.

You should have a conversation with your financial consultants about how n=much you can invest and the rate of returns. Expectation is not really to occur in real estate or any long term investment.

If you are trying to invest in any prime property you should adequate money to buy it and also maintain it. A prime property is one which is situated in the heart of the city and is near from airport, restaurants and all luxurious amenities.

You can also go for investment in commercial properties. However you should make sure that it will be able to return you the money which you are investing.

Real estate investing is really profitable these days. You should really go for it.

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