Is Real Estate a Good Investment?


by Mari milian - Date: 2008-09-24 - Word Count: 441 Share This!

Most business minded people like to choose those investments that would not only provide them income but also security. Businessmen want to invest money for a longer period of time so they invest their money in real estate. They can invest their money in other areas like banks, stock market, business ventures, real estate and other financial companies. Real investors may cost the investors a lot of money in the beginning but it can promise a higher return in the future.

Real estate can be purchased also from taking a loan from the bank on an installment basis. In such a case, investor will only make down payment and the remaining amount will be paid on a monthly basis. This kind of investment has the capacity to increase its appraised value up to 10% every year depending on the location and the development of a given investment.Real estate investment is more of a long term investment. It may not be huge gains over the short run, but in long run it is a great investment. A big reason for investing in real estate is long term appreciation. Some properties may require renovation, repair which can be resolved. Certain warehouses have started turning towards large apartment buildings etc and sold either as apartment buildings.

There are many reasons for investing in real estate like it is considered as a high-risk investment, but the long-term returns are always quite substantial, and that's why people do it. There are some short reasons for investing in real estate like it provides short term gain. Real estate can provide good returns to the real estate investors. Cash flow is the gross spend able income which is being spend at the year end after all the operating expenses and mortgage payments have been made. Value of real estate appreciates over time. The main reason being the supply of land is becoming limited, whereas the demand for investment real estate, whether single-family homes, apartment buildings, commercial or industrial, is on the rise.

Real estate investment provides tax shelter because IRS may allow you to write off against other real estate income. It also provides equity income. Various strategies can be used on the road to real estate wealth. Arizona investors can buy a house, renovate it in short period and then sell it at profit. A common reason to purchase an income producing property such as a single family home, an apartment building, office, retail building or farmland is to rent the property. There are various properties in Arizona land for sale which can be purchased and then given on rent so that the investor can earn money.


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Mari milian is an Expert author for Arizona land for sale and Arlington property for sale. She has written many articles like Phoenix propertyfor sale, Hyder farm land for sale,Kuldip Verma,Billy Whala and Eloy land for sale. For more information visit: vermaland.com contact her at caterina.milian@gmail.com

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