By Sintilia Miecevole
With so many people making tremendous amounts of money in
property or real estate it's no wonder so many are looking at
real estate as an investment. It offers more security than the
stock market, provides great potential returns, offers tax
benefits and it sounds cool to be 'in real estate'.
One challenge many are faced with is the money to acquire a
piece of property. You've heard, "I would love to invest in
real estate, but I just can't afford to!" Hardly anyone who
buys a piece of real estate has enough money to pay for it.
That's where your banker comes in.
Owning your own home may sound like a somewhat obvious way to
get started in real estate, but it is also a very good way to
do so. This step is overlooked by a lot of people. Just take a
look at how many people are still renting a property instead
buying one. People rent because in their mind, "they don't
enough money to buy a house." In reality it would be much
cheaper for them to buy!
When you rent,you're not building anything long term. Every
dollar you spend on rent is a dollar you will never see again.
If you own your own home, you would be paying your mortgage.
The basics of practically all mortgages are more or less the
same. Every month you make a payment which consists of two
parts: interest and principle. Interest can be compared to
rent. Those dollars are gone and you will never hear from them
again. The part of the payment that goes to the principle is
money you keep. Every dollar used to pay off the principal is
dollar you put in your own pocket.
So if you're thinking about getting started in real estate and
you don't 'own' your own house yet... Change it, and get some
experience. It's a great first step towards building your
capital and it makes more sense financially. There are
opportunities for accelerating the process of building your
worth. When real estate prices go up, so does the value of
property. The money you owe the bank, your mortgage, remains
the same. In other words this helps you build your net worth.
People that pay rent... Their net worth does nothing. Their
landlord's net worth is doing very nicely in this scenario and
he or she will probably love you for it. So if you get a warm
feeling about making somebody else rich at your own expense...
keep renting. To build your own capital ... Buy your own
Many home owners have accumulated more money through
appreciation of their property than by working a full time job
for years. Before you go out and buy the first property you
see, don't forget some security measures are in order. As you
may or may not know, real estate prices do not always go up.
This can be shocker to some people, as well as an ugly
for those who overlooked this minor detail. If for some reason
you would have to sell your home in a down market, it can be a
costly adventure. You wouldn't be the first to end up with a
house worth considerably less than the mortgage. Make sure to
keep some slack. Overall, real estate prices have always been
on the rise, but in any cycle there are down periods. By
keeping some slack and being patient you will be able to sit
through these times and profit from the long term up-trend.
About The Author: With many years in the industry of property
or real estate, host, Sintilia Miecevole's site
www.miraproperty.com will help you with searches from
taxes, listings including residential, commercial and land to
unclaimed property, vacation, waterfront and much more. Be
to visit www.miraproperty.com for further information.