ith all the stories of in. Let's face it. Do you know
people making tremendous anyone that owns their own home?
amounts of money in real I mean truly own it? Probably
estate it's no wonder why so many not. Sure, you know a lot of
are looking at real estate as an people that have a house to their
investment vehicle. It offers name, but wait until they get
more security than the stock behind on their monthly mortgage
market, provides great potential payments and you will soon find
returns, offers tax benefits and out who really owns their house.
let's not forget; it sounds cool That's right, the bank. So if
to be 'in real estate'. Everybody these people can use the bank's
can buy and sell stocks from money to buy a house, why can't
their phone or computer these you?
days. But real estate, now that's
something else. Now 'owning' your own home may
sound like a somewhat obvious way
One of the challenges that many to get started in real estate,
are faced with is putting up the but it is also a very good way to
money to acquire a piece of do so. You might say "Duh..." But
property. Although in reality apparently this little step is
this is usually not the biggest overlooked by a lot of people.
obstacle. You might say "Hey, Just take a look at how many
what do you mean, not an people are still renting a
obstacle. I would love to invest property instead of buying one.
in real estate, but I just can't Now of course the relation
afford to!" The point is that between rent and housing prices
hardly anyone who buys a piece of varies from country to country
real estate has enough money in and even from area to area. But
their account to pay for it. wherever you go you will still
That's where your banker comes find people renting, because in
their mind "they don't have off the principal is a dollar you
enough money to buy a house." In put in your own pocket.
reality it would be much cheaper
for them to buy! So if you're thinking about
getting started in real estate
When you rent, you are pretty and you don't 'own' your own
much flushing your money down the house yet... Change it, and get
toilet. Of course you are getting some experience. It's a great
the pleasure of living, but the first step towards building your
point is you're not building capital and in many cases, it
anything long term. Every dollar just makes more sense
you spend on rent is a dollar you financially. It can also supply a
will never see again. Whereas if range of opportunities for
you own your own home, instead of accelerating the process of
paying rent you would be paying building your net worth. When
for your mortgage. Even though real estate prices go up, so does
there is a lot of variety in the value of your property.
mortgages these days, the basics Whereas the money you owe the
of practically all mortgages are bank, your mortgage, remains the
more or less the same. Every same. In other words this helps
month you make a payment which you build your net worth. Compare
consists of two parts: interest this to people that are paying
and principle. The interest part rent... Their net worth does
can be compared to rent. Those nothing. However their landlord's
dollars are gone with the wind net worth is doing very nicely in
and you will never hear from them this scenario and he or she will
again. However, the part of the probably love you for it. So if
payment that goes to the you get a warm fuzzy feeling
principle is money you keep. about making somebody else rich
Every dollar that is used to pay at your own expense... Keep
renting. If you would rather overlooked this minor detail in
build your own capital instead... the past. If for some reason you
Buy your own house! would have to sell your home in a
down market, it can be a costly
Many home owners have accumulated adventure. You wouldn't be the
more money through appreciation first to end up with a house
of their property than by working worth considerably less than the
a full time job for many years. mortgage resting on it. So make
Now before you go out and buy the sure to keep some slack. In the
first property you lay eyes on, long run real estate prices have
don't forget that some security always been on the rise, but in
measures are in order here. As any cycle there are down periods.
you may or may not know, real By keeping some slack and being
estate prices do not always go patient you will be able to sit
up, and certainly not in a through these times and profit
straight line. Yep, this can be from the long term up-trend.
shocker to some people, as well
as an ugly reminder for those who
About the Author:
Save $$$ Selling Your Own Home FREE eBook Shows You How! http://www.push-button-online-income.com/fsbo
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