Real Estate Investment

Real Estate: A Strong Investment
By Naomi Warne

Even in uncertain economic times , history shows that
real estate is one of the soundest investments a family can
make. During the Great Depression of the 1930s when the stock
market plummeted as much as 89 percent, housing prices dropped
only 39 percent. So, according to most of the research on
housing trends, prices continually stay at the same level as,
and most often appreciate faster than the rate of inflation. In
fact, the prices of houses actually increased by 10 percent
during the economic recessions of the mid-19702 and the early
1980s.
The last downturn of the global stock market resulted in
millions of investors who got their fingers burned. Overnight,
life savings were eaten away, retirement funds went into
decline and the economic forecast for all of us who had any
money invested in stocks and shares was gloomy, to say the very
least. And as a direct result, investors sought alternative
asset classes to invest their hard earned money in. This has
led to a global boom in real estate markets and property
prices, and has spawned a generation of budding real estate
investors.

However, the opportunities to make big, quick profits in
residential real estate tend to come and go. If the local
market is hot, families might get to buy and sell a house at a
profit. but, if the market is not so hot, there are chances
that you’ll have to hold on to the house for a longer period of
time before selling it or at least till the market turns.

Tips for First-Time Real Estate Buyers
If you play well, you can be the big winners in this current
environment of boom. However, it’s important to draw up a good
budget to help you decide what you can afford. And, once you’ve
determined a price and picked your desired community, you can
shop around to find the best house within your budget.

However, for those of you who’re still uncertain about how to
go about it, there are five things that might just help you
close a great deal. While deciding on the house to invest in,
never make the mistake of assuming anything. Instead get help
from an expert if you’ve any doubts. Also, it’s important to
set a realistic budget and stick to it. You also need to
consider every single area of cost and payment to make sure
that there are no nasty surprises on the way.

More than Just an Investment
Residential real estate is more than just an investment. For
example, if you purchase a vacation home, it will not only be a
great deal when housing prices move upwards, but it can also be
a place for some great vacations for your family and you.

Also, there is another advantage. The federal government
believes that home ownership is so important to the future of
our country that it has allowed mortgage interests to remain a
substantial tax shelter for families. So, homeowners are
allowed deductions on their property taxes. And, the profit on
the sale of your home remains tax-free as long as you buy a
house for a greater or equal price.

So, before you decide that residential real estate investment
is not exactly your cup of tea, re-examine the financial
benefits of owning your own home. Also remember that the stock
market is not the only place where people can make their
fortunes. And also, you’ll hardly ever hear of real-estate
investors who’ve gone bankrupt, unlike stock market investors.