Several Of The Obvious Benefits You Will See When You Invest In Real Estate

September 30, 2010 By

People continue to be a little bit nervous about the option of investing in real estate. This may well be down to the fact that a great deal of financial input is involved in building a portfolio and also the fact that technical knowledge and hard work is also required. However, a great deal of benefits will appear if you do invest in property, so let’s quickly examine some of these now.

Of course, the first is simply the fact that you can build good cash flow through these investments. This refers to the amount of money that you learn from the property minus the expenses associated with it. Positive cash flow is, of course, excellent, but even negative cash flow will be helpful if you are building a portfolio.

The increase in the value of the property is also going to be very important as well. Appreciation of this kind can be done into different ways – internal and external. Internal appreciation of the property will refer to any changes that you make to it in order to increase its value. External appreciation will involve external factors outside of your sphere of influence that will help the property to go up in price. Boys on, if you purchase a property in an up-and-coming area this will help to increase its value.

Leverage is important as well and this refers to purchasing the property by borrowing a large percentage of its value. No other type of investment will allow you to take advantage of such a high degree of leverage, and therefore you can easily build a portfolio without investing too much of your own money.

Tax advantages will also appear when you invest in property as well. You can avoid all sorts of different tax obligations through your investments and these can help to improve your profit line as well.

Of course, in addition you will also be able to benefit from the residual nature of your income from the property rather than more linear forms of income. In other words, you will be able to get paid on the property that you own without actually having to do any work for it. This enables you to create income streams that are not only large, but also residual.

Of course, people also claim that property is more enjoyable as an investment process than other forms. This allows you to have a great deal more fun during the process.

Overseas property investment can provide you with a secure financial future and other benefits. You can find the information about how to invest in property easily today!

Filed Under: Investing Tagged With: ,

Simple Reasons To Invest In Property Rentals But Not Take On The Role Of Landlord

September 30, 2010 By

When you invest in property rentals that are multi-family dwellings AND you choose to accept the role of “landlord”, you are taking on a lot more than the mere chance your investment may prove to be financially fatal. You are also accepting the problems of the tenants who rent your dwelling – problems which can lead to extreme headaches, to say the least.

Although the list of complaints renters are famous for making goes on and on, here is just brief summary of a few of the most common of them that might require you to step up as “referee”, in addition to your normal role of “investor”:

Renters who can’t stand each other is a sad, but common enough problem – it just is what it is. And when you put on the hat of landlord after being used to donning the comfortable little hat of “investor” you may be shocked at the things you will be expected to deal with regarding those “adult” renters who act worse than two year old children when it comes to dealing with each other.

This is not to say there aren’t valid reasons for a tenant to voice concerns over certain actions or behaviors of another, however, many issues brought to a landlord’s attention, that a renter expects dealt with immediately are the very definition of the word “ridiculous”.

So, if this turns out to be your situation with your new tenants, don’t be surprised to get phone calls in the middle of the night by one of them bending your ear about the other’s “latest” outrageously hostile act.

You may hear about “sins” committed that you weren’t aware were actual sins – like how the tenant to the left always gives the renter to the right “dirty looks” whenever they happen to meet, or how the second renter’s little dog always poops on the that first renter’s prize rosebush every morning at 5 A. M without fail!

Moreover, don’t think you will get to escape hearing a few complaints regarding the unit itself – even if it’s the SAME unit the complainant just signed off on after his inspection the day before, when he moved in. A landlord has to remember that each new day can bring ANYTHING when it comes to tenant satisfaction, or lack thereof.

And the complaints may be ridiculous as well. Aside from the fact that safety issue complaints are acceptable and encouraged from the tenants, you might find yourself treated to whining about a “minuscule” crack in the plaster above a door knob, or a sudden dislike of the carpet in the bedroom.

So when you decide to invest in property rentals, remember to think carefully before taking on the role of landlord. It’s not a job that most people handle that well, but if you think you can do it, at least you will have been warned ahead of time.

If you choose to invest in property, it expands your investment portfolio. The opportunity for overseas property investment has never been more profitable.

Filed Under: Investing, Related News Tagged With: , ,