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

---

Why You Should Rent To Live And Buy To Invest

Why you should Rent a place to live in and... Read More

Let the Broker Show the House

Of course you're curious, and you'd like to see what... Read More

Sell your Property Faster

Learn how to sell your property faster and at the... Read More

Feel At Home Faster After You Move

Moving to a new community can be a great adventure,... Read More

Where To Start In Looking For A Central Illinois Realtor

Central Illinois is an excellent location for families and businesses.... Read More

Selling Houses Fast: Basics of Design & Color Psychology

Fixing up houses to ready them for sale includes a... Read More

Is An Old Home for You? ? The Pros

If you prefer a home that is unique and has... Read More

Investing in Real Estate Vehicle for Wealth Building

Real estate is one of the best vehicles of building... Read More

Buying Beach Houses in New Zealand: Real Estate and Investment Opportunities

Buying a beach house in New Zealand offers many possibilities.New... Read More

Purchase Your First Home with Confidence

If you are making the transition from renter to homeowner,... Read More

Boom or Bust

For those looking to invest in the real estate market?keep... Read More

Do You Want To Sell Your Rehabs Fast?

That's an obvious question ? we all do! So what... Read More

Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance

In an earlier article, we presented various options for ensuring... Read More

Where is the Sophisticated Property Investor Putting his Money?

The Traditional FavouritesOver the last five to ten years, UK... Read More

Buy to Let Property Investment

In recent years buy to let has been a popular... Read More

The Benefits of A Real Estate Agent 101

Buying and selling property is not as easy as you... Read More

Real Estate Investing Requires Education

I really believe in getting an education in real estate... Read More

Is a Vacation Home Right for You?

Many of us dream about owning the vacation home in... Read More

Business Credit Card Dirty Tricks

My system teaches people that the proper use of credit... Read More

High Tension for the Buyer and Seller of Real Estate Can Be Reduced

Tensions can run high in both the selling and buying... Read More

Home Buying Checklist ? Windows

If you are in the market to purchase a home,... Read More

How To Best Negotiate A House Deal

Whether it's selling your home or buying a home, more... Read More

Selling Your Home: The Power of a Great Sales Flyer

Even though its importance is often overlooked, a great sales... Read More

Should Sellers Order a Pre-sale Home Inspection?

One of the main reasons home sale transactions fall apart... Read More

Selling Your House Fast!

The physical senses of buyers respond to a home's design,... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

Home Staging Strategies

Who are you preparing your home to sell to?You, as... Read More

What We Do To Sell Your Property!

Once you have contracted us to sell your property we... Read More

Be Patient Screening Tenants

Rental real estate is a solid way to make money.... Read More

Renting Versus Buying A Home

Renters are often in a quandary as to whether it... Read More

Renting a House

Renting a house or a room in your home is... Read More

Wealth Building ? An Advantage of Home Ownership

As you grow older, the issue of wealth building comes... Read More

Burn, Baby, Burn!

Luxury homes are lots of fun to inspect. Sure, the... Read More