Real Estate Investing For Long Term Gain. |
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| By Doc Schmyz |
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| News flash: Real estate is in a downturn. Prices are
dropping. Does this mean that you should get out of Real
Estate investing? No this is actually the BEST TIME to
increase your property portfolio. When you are buy property
it does not really matter whether the market is up or down
unless you are trying to do a fast turn over. If you are
holding for the long term then you have to deal with the
market fluctuations with an inevitable upward trend at some
point. If you can buy at the lower end of the cycle that is
the best time to buy of course. 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. If the property market is rising you can be confident that the value of your investment is increasing. That is where your profit is and you should be able to sell if necessary. However, that was a few years ago when the market was more positive but now the reality is that the market has dropped and you need to be able to hold long term without any worries. It may take a few years before we hit healthy real estate selling conditions again, let alone a property boom. Several investors that started during the "boom" now have to change how they are thinking about investing. This is the time when we separate "those who can from those who got lucky and made a few bucks". Now is when the long term hold plans must start becoming the focus. This is a business. You need to do the math. Will your income from your investment cover the expenses/new mortgage? Having said all that, there is no getting away from the fact that with good research and due diligence the down and depressed market presents serious investors with the best opportunities to build a portfolio of profitable properties for long term gains. |
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| Article Source: http://interpret.zar.vg | ||||
| About The Author Doc Schmyz has worked with investors all over the US. His free website shares Real estate investing information for all over the US. Find real estate information by state |
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