Articles
Newsletter
Home 
Finance Real Estate Real estate investing long term.
Finance Real Estate Real estate investing long term.
| Real estate investing long term. |
 |
 |
 |
| Written by Doc Schmyz |
| Thursday, 26 February 2009 09:41 |
|
The real estate market has dropped out. Prices are falling around your ears. So does this mean that you should get out of property investing? No this is actually a great opportunity to increase your portfolio. When you are buy real estate it does not really matter where the market is, unless you are considering selling in the short term. If you are holding long term then you have to accept the market fluctuations if you can buy during a low period of a cycle that is the "golden hour" in real estate...but sometimes it is hard to find that hour on your watch. When the real estate market is experiencing a downturn it is the best time to buy. Just check the foreclosure lists and auctions. You can pick and choose and buy normally below market value. However, keep an eye on your monthly bottom line. In other words make sure your rental income (from your new investment) equals or exceeds your outgoing including mortgage repayments. If you have other income you may be able to stand an extra $100 or more per month to top up the mortgage but try to avoid it. You will sleep far better at night knowing that the mortgage payments are taken care of. When real estate prices where climbing we all knew that our property values also climbed. Now in a declining market and slower home sales, investors need to be able to hold those property investments for a longer period of time. Meanwhile, concentrate on positive gearing and steadily increasing returns. This is a long term game and always has been. Look at property investing from a business perspective and do the sums before you buy. You need a decent return on investment and you need the rental return to cover or nearly cover the mortgage expenditure. Taking the current market woes in to consideration, the fact that now is a great time to buy and hold for the long term, goes without saying. Due diligence is the key for the next few years. Now is the time to look at buying for long term gains. About the Author: Doc Schmyz has been investing in real estate since 1990 He designed a free online resource for real estate investors to get free real estate investing information for more of Doc's tips go to his blog: Super investment Geek Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 310983
Content : 2297
Web Links : 1
Content View Hits : 310983