f you are trying to find a see it is actually a much better
way to make money you may investment than you first
think of the stock market thought.
or high interest savings accounts
as a place to invest your money If you are looking to buy a house
in order to get a good return. that is on sale at $200,000 you
However, real estate is another are likely to require a mortgage
option to think about. Is it a in order to secure the sale. For
good investment? this example, let’s say you have
a $40,000 deposit in cash to
In the US, most houses increase place against the property. This
in value by approximately five is the amount of money you could
per cent a year. Of course, this have invested in the stock
can vary depending on the market. In one years time your
geographical location and also house will have increased in
the economy so that one year you value by five per cent, meaning
may not see an increase at all its value will have increased to
and the next it may leap in value $210,000. This gives you a profit
by up to 25 per cent for example. of $10,000 in a year. This level
However, research shows that on of return is possible through
average over the past decade, wise investment in other fields
house prices have increased by but when you consider that you
ten per cent a year. The amount have made $10,000 profit on your
of profit on this is actually initial investment of $40,000
lower than you could make on the that five per cent increase
stock market and so those looking becomes a 25 per cent increase.
for a fast way to earn millions This is an excellent level of
may well be put off this type of return on your investment that
investment. However, if you look would be difficult to achieve
at the figures involved you can elsewhere. In addition to this,
you always have a level of sell as you will own a greater
security with real estate as you proportion of the house outright.
have actually purchased something
tangible and this will continue
to be yours, whereas there is If you bought the property as a
always a high level of risk buy-to-let investment you will
associated with stocks and need to be sure that the amount
shares. of rent you will make from your
tenants will cover your mortgage
Of course, of you have purchased costs. In addition to this, you
a home with a mortgage, as per will need to have funds available
the previous example, you will be to enable any repairs that are
making monthly repayments. If you required to be completed quickly
have purchased the property as in order to ensure that you are
somewhere for you yourself to not in breach of your rental
live you were probably renting agreement. If you are considering
prior to this. When renting you buying a property in order to
are simply throwing money down rent it out I highly recommend
the drain so you can be satisfied you seek professional advice
that your mortgage payments are before committing yourself so
contributing directly to your that you can be sure that it will
ownership of the property. This not end up costing you more per
will allow you to make even more month than it is making you.
money off your investment in
future years should you choose to
About the Author:
The author regularly contributes to Hot Housing Markets where more real estate investing help and local real estate price data is freely available.
