14. Investment. Real Estate And Property
In last weeks edition of the Investment series, we covered investing in preferred stock. Time for something a little different this week, an Investment strategy that most people get involved in sometime throughout their lives - borrowing to buy real estate.
Generally speaking, most people think of loans as debt. They also think of debt as a universally bad thing. This, however, isn’t such a black and white issue.
It’s true that debt sunk into disposable goods like televisions or other luxury items is bad debt, debt that’s put towards goods that will increase in value is considered good debt, the same as any other investment. One of the most common forms of “good debt” that people hold is real estate.
A Worthwhile Investment
When you get ready to buy a home, you must learn to think of it as the Investment that it really is. Of course, you’re going to get a lot of personal use out of your home, but at the same time, if you put the right effort into upkeep and maintaining your home, you will eventually be able to sell it for more than you bought it for – a worthwhile investment.
But real estate Investment doesn’t stop at one’s personal home. There are many other ways that real estate can serve you. For instance, you could purchase a commercial property. Any businesses wanting to operate there would then have to pay you rent. The same is true for apartment buildings or condominiums, collecting monthly rent can be a great way to supplement your income and save for the future.
What Type Of Property Do I Invest In?
What kind of real estate you should think about investing in really depends on what you’re looking to get out of it. If you’re looking for a long term investment, then buying a good piece of land or real estate in a nice neighbourhood will pay off that way. You can eventually sell it for a nice sum. If you’re looking more for an immediate payoff that can serve as income, buying a rental property is an excellent route to take.
Bear in mind, however that real estate carries its own risks and caveats. Make sure you’re intimately familiar with the cost of buying property in your area, as well as recurring expenses such as maintenance and taxes.
See you next week for part 15 of Investments.
Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009
Tags: Income, Invest, Investing, Investment, Property, Real Estate
July 1st, 2009 at 8:16 am
It all boils down to assets versus liabilities. The more you can create assets early in life, the more liabilities you will be able to afford later in life. It is really that simple!