Real Estate: A Strong Investment

Description: Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. Also remember that the stock market is not the only place where people can make their fortunes. And also, you'll hardly ever hear of real-estate investors who've gone bankrupt, unlike stock market investors.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. So, according to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than the rate of inflation. In fact, the prices of houses actually increased by 10 percent during the economic recessions of the mid-19702 and the early 1980s.

The last downturn of the global stock market resulted in millions of investors who got their fingers burned. Overnight, life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy, to say the very least. And as a direct result, investors sought alternative asset classes to invest their hard earned money in. This has led to a global boom in real estate markets and property prices, and has spawned a generation of budding real estate investors.

However, the opportunities to make big, quick profits in residential real estate tend to come and go. If the local market is hot, families might get to buy and sell a house at a profit. but, if the market is not so hot, there are chances that you'll have to hold on to the house for a longer period of time before selling it or at least till the market turns.

Tips for First-Time Real Estate Buyers
If you play well, you can be the big winners in this current environment of boom. However, it's important to draw up a good budget to help you decide what you can afford. And, once you've determined a price and picked your desired community, you can shop around to find the best house within your budget.

However, for those of you who're still uncertain about how to go about it, there are five things that might just help you close a great deal. While deciding on the house to invest in, never make the mistake of assuming anything. Instead get help from an expert if you've any doubts. Also, it's important to set a realistic budget and stick to it. You also need to consider every single area of cost and payment to make sure that there are no nasty surprises on the way.

More than Just an Investment
Residential real estate is more than just an investment. For example, if you purchase a vacation home, it will not only be a great deal when housing prices move upwards, but it can also be a place for some great vacations for your family and you.

Also, there is another advantage. The federal government believes that home ownership is so important to the future of our country that it has allowed mortgage interests to remain a substantial tax shelter for families. So, homeowners are allowed deductions on their property taxes. And, the profit on the sale of your home remains tax-free as long as you buy a house for a greater or equal price.

So, before you decide that residential real estate investment is not exactly your cup of tea, re-examine the financial benefits of owning your own home. Also remember that the stock market is not the only place where people can make their fortunes. And also, you'll hardly ever hear of real-estate investors who've gone bankrupt, unlike stock market investors.

Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a Real Estate Agent, Naomi has established herself as an analyst and Property Consultant, Australia.

http://www.mortgagemall.com.au

---

10 Top Considerations For Those Buying Property Abroad

Are you one of a growing number of people considering... Read More

Real Estate Local FAQs.

There are many frequently asked questions and any local real... Read More

Cutting Edge Real Estate, Is the Bubble Ready To Burst?

Of course, this is the big question in real estate... Read More

The 21st Century Way To Build Equity

Here to stay and firmly established in the U.S. mortgage... Read More

11 Different Ways to Participate in The New Millennium Real State Boom

Many parts of the country are going through a real... Read More

Lake Property in Danbury

A lakeside vacation or second home can be a quiet... Read More

Will a 1031 Property Exchange Solve Your Problems?

If your problem is listed below, a 1031 exchange may... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market... Read More

Property Investing Secrets 4

Property Investing Secrets:How to Sell to 100% of the Market... Read More

If Your House Is a Mess, You Dont Have To Sell For Less

Don't be tempted by "We Buy Houses" or "Sell Your... Read More

Property Investing

Wrapping a property is a simple concept that can create... Read More

Successful Real Estate Investing

One of the best roads to wealth in America has... Read More

Home Warranties: Are They Too Good To Be True?

What is a 'Home Warranty?'A home warranty is like an... Read More

Taxes When You Sell Your Home

What's the difference between death and taxes?Death doesn't change every... Read More

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Raising Money For Property Development

In addition to finding the right property, one of the... Read More

Searching the Hawaii Property Listings

Maui is an island so full of life and vivacity... Read More

How to Decrease the Value of Your Own House

Owning a house is part of the American Dream. Depending... Read More

Property Investing Secrets 1

When property investing, pay the seller their asking price but... Read More

Property in Northern Spain

If you're looking for the 'real' Spain where the culture,... Read More

Investor Banned From Offering Property For Rent

Do you realize that you might be prevented from renting... Read More

Sell Your Home Without a Realtor and Save Thousand$$$

A typical real estate commission on a $234,000 home (national... Read More

Why Should Sellers Be Absent During Showings?

If only there were a way to sell your home... Read More

Real Estate Investment - Why it is Big Business?

When examining the different asset classes, real estate is generally... Read More

NAHB?s Voluntary Model Green Home Building Guidelines

The voluntary Model Green Home Building Guidelines are designed to... Read More

Can I Sell My Private Mortgage Notes?

In this country millions of homes are sold every year.... Read More

Green Building Media Fact Sheet - Past, Present & Future

PastSpecialized, niche home builders began constructing resource-efficient, environmentally sensitive homes... Read More

Buying Houses at Discount Prices

Buying a house is the best way you can create... Read More

10 Tips to Sell Your House Faster!

Here are some Handy wee Tips to help you Sell... Read More

Condos Vs. Condo Hotels For Vacaton Home Ownership

Condo hotels, also called condotels, are a relatively new concept... Read More

Use Targeted Decorating To Get A Higher Price For Your House

This article will show you how to sell your home... Read More

Product Review of Carelton Sheets No Money Down Course

Real estate continues to be a very important part of... Read More

Various Aspects Of The Lease Purchase Business

In a previous article, we wrote why we believe that... Read More