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Why You Should Invest In Real Estate NOW.

Posted By RichK On July 18, 2006 @ 8:00 am In Investment properties | No Comments

I think the question should be why wouldn’t you invest in real estate. Real estate has historically only gone up in value. Remember they bought Mannhattan Island for $24.00. Will Rogers said “buy land they aint maken anymore”. If its got location, location, location you can’t replace it. Real estate is also a stable investment. Can you determine what one technology company’s stock is doing by comparing it to other technology companies? No. You can with real estate. It is called an appraisal. One is done with every purchase. Your home’s value will not differ drastically from neighboring ones. If you have 10k you want to invest how much stock could you buy? Answer, ten thousand dollars worth. Now how much real estate could you buy? Answer, with 10% down one hundred thousand dollars worth. Now lets assume both investments appreciated 10%. What is your return on investment capital? Answer, if you invested 10k in stocks your stocks are now worth $11,000. You made $1000 or 10%. Compare that to real estate. You invested 10k in a home worth 100k it is now worth $110000. You DOUBLED your money. Your return on investment was 100%. If your real estate investments are collecting rents than you have not only bought 90% of the place with other people’s money, other people are paying back the loan. Ideally with a positive cash flow on top of that. Real estate has made more people rich more times than any other investment. That is why I not only sell real estate. I also invest in real estate.

 A lot of investors have gone into hiding in the past few years. It is not that they were not making offers. They are getting out bid on homes by owner occupants. Owner occupant buyers are generally willing to pay more. With the market cooling I think you will see some good buys. Be ready sign up for my email notifications of just listed homes, multi families or land. [1] http://www.instantmlsemail.com/

If you have a question or would like to post a comment about investing in Tech Valley Real Estate send me an email: [2] MailTo:RichK@Real-e-SmartRealty.com . I will send you back a password and you can start blogging.


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