How to Win the Real Estate Game
Many investors are looking for alternative forms of investment to stay away from the stock market.
Many of these investors turn to real estate.
There are many benefits to investing in real estate.
It is often seen as a hedge against inflation because property values tend to increase at least as high as inflation year after year.
With the recession of 2008 to 2010 still raging, and the government printing money like never before in order to fight that recession, any inflationary hedges you can invest in may well be worth your time.
Another reason why investing in real estate is especially nice are the many tax advantages that come along with it.
I won't spend a lot of time talking about that today though.
There is one downside to this form of investing and that is quick profits.
For years investors could find incredibly quick profits by investing in real estate, often purchasing a house in the morning for no money down and flipping it in the afternoon for a hefty gain with little to no risk.
Those heady days are definitely over.
In fact, many people believe that it's that exact activity that led to the massive real estate bubble that led to the collapse of the real estate and banking markets that pushed the country into this massive recession that we now enjoy so very much! These days if you plan to invest in property you can expect to have your money tied up for several years at a time...
sometimes as long as seven or eight years before your investment becomes truly profitable.
This is just fine for those of us with an eye towards long-term investing anyway but it spells disaster for the get rich quick type of investors...
but maybe that's just as well.
What are the best investments today? Some people suggest that rental property is just about the best bet you can make from an investment point of view.
The reason why rental property may be about to take off is because many people have lost their houses in this current recession.
Nobody likes to benefit from other people's misery, and the fact that many people have lost their homes to foreclosure is certainly a tragedy...
but at the same time those people have to live somewhere and most of them have turned to rental properties because they can't afford or are unable to secure a new mortgage to purchase a home.
This massive influx into the rental market, coupled with falling house prices due to the recession may make now a perfect time to invest in rental property.
Just remember that you may be in it for the long haul which means years of answering phone calls at two o'clock in the morning because somebody's toilet is plugged up or the furnace has stopped working.
If this sounds like your cup of tea than rental investing may be just the thing for you.