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Why Invest in Real Estate?

At the risk of sounding rather corny, real estate investment is a gift that keeps on giving. When compared to other types of investments, such as stocks, bonds, automobiles, and such, the security that real estate offers is unparalleled. As far as profitability, real estate outperforms any other investment in the long haul. It also offers an investor the opportunity to pay off the investment over a period of time via a variety of available financing strategies.

Generally, a buyer only needs to put twenty percent of the total purchase price as a down payment, and at times even less money is necessary. The rest of the money can be financed. After you factor in the other costs associated within the overall transaction (closing costs, maintenance expenses, property taxes), an investment is real estate is still considerably more of a secure business venture. These costs are relatively small when compared to the overall value of the property.

Stocks, bonds, and other commodities have to be purchased outright. Therefore, a buyer is not given the option of supplementing his/her funds through financing options. These types of investments also run the risk of being subject to greater fluctuations in price due to the ever changing market economy.

There is no doubt about it that the real estate market is booming right now. According to the National Association of Realtors, there has never been a huge price drop on home sales since they began collecting information on existing home sales. Foreclosures and bank owned properties are at an all time high. Many skeptics tend to associate real estate investments as a gamble. Instead of viewing it as a potential risk or loss, take into account that the benefits outweigh the risk factors on an overall basis.

Consider the many upswings when compared to other types of investments, such as the previously mentioned stocks and bonds. With real estate, an investor has the opportunity to benefit from a leveraged return on the equity of the property. He/she can tap into the equity of the home or property by borrowing against it. This money can be used for home improvements, paying off student loans, reducing credit card debt, or purchasing a new care. With this increase in borrowing power, the possibilities are endless.

Appreciation of value of propertyis another added bonus. Real estate appreciates in a couple of different ways. Supply and demand is always a factor. Market conditions typically create an upward pressure on housing prices. Another way to increase the value of a property is through home improvements and renovations. If properly maintained and the neighborhood is not deteriorating substantially, real estate will continue to appreciate in value. Even if a home was to go into foreclosure, it still has some value.

Investing in this market can be quite a lucrative endeavor in a variety of areas. Owning a home goes hand in hand with a certain social status. It is a positive component both on a personal and a financial level. Because it is such a highly leveraged asset, it generates high yielding returns and creates greater wealth. Through the incorporation of an amortization loan, where the balance of the loan is reduced with each payment, part of each payment is applied toward the interest, and the rest of the amount goes to the principal, an investor increases his/her wealth with each payment made. It is almost a forced savings program, where one can build up equity over the course of the loan. This amortization schedule when coupled with the steady price appreciation on the initial money put down increase profitability. The tax benefits and government subsidies for income generating assets such as real estate are additional perks available to an investor.

True, as with any investment opportunity, there is a level of risk involved, but real estate offers an investor the greater benefits. In addition to giving a buyer more leverage, real estate also offers more of a sense of security. The performance of real estate, in regard to price appreciation is not directly affected by the performance of the stocks and bonds markets. Variations in home prices are generally lower that those associated with stocks and bonds. Overall, the downswings in the real estate market are not as pronounced as they might be with other investments.

With so much to offer and the wealth of opportunities available in the market right now, why not take the plunge and invest. Buying and selling homes and properties has become a much easier and faster process than it has been in the past. Because the market for real estate has become more liquid and less costly, there are more opportunities than ever for the public at large. The falling mortgage rates and the real estate boom in the current economy should be taken advantage of. Investors that have previously been intimidated by this industry should realize that it is neither complicated nor expensive. It is all about having the right attitude.

An Answer of No to Your Home Based Business Opportunity Does Not Matter

When you are in a home based business opportunity you must follow the proven system and not let your emotions take over your efforts. A professional must invest in the process and not the outcome. You can only control your income generating activities and not the decision making process of your potential business partner.

When you are talking to your potential business partners their decision to your opportunity is irrelevant to you success. You must be consistent and persistent with your income generating activities. Discipline is less of a burden to carry for a short time, then regret. The vast majority of your stress is from becoming vested in the outcome. You must detach yourself emotional from the outcome of your marketing efforts.

You have made the investment in your home based business opportunity. You must not allow an emotional roller coaster to occur every time a potential business partners says no to your opportunity. Your daily actions will then become very unpredictable and ineffective. You have to treat a “yes” the same way you treat a “no” which is acknowledge it, then continue aggressively with your income generating activities.

You may think that premise absolutely make no sense at all. You are investing time marketing your business and you would love favorable results every time. The process of doing your income generating activity is more important. The results will be in your favor as long as you truly detach yourself.

You must control the actions steps that you take and not worry about the decision making process of the prospects. Some of the things that you can control is learning and applying the different marketing methods as quickly and efficiently as possible. Your interaction as a true business professional will make you even more attractive. The system will only work if you are detached and apply consistent and persistent actions to your home based business opportunity.

Saving Versus Investing

A savings is something that when set aside promises safety of principal and an adequate return. Financial vehicles not meeting these criteria are investments or speculations. After the great market decline of 1929-1932 all common stocks were widely regarded as speculative by nature. The distinction between saving versus investing had and will be a useful one and its disappearance is a cause for real concern. You see by the disappearance of a true savings we were taught to invest or speculate in its place, and expecting to receive a substantial return in the process, this type of thinking sets us up for major losses while expecting a safe and secure retirement which will only happen a small portion of the time do to being placed in a virtual losing situation right from the start.

It should be said that Wall Street as an institution would be well advised to emphasize the differences of saving versus investing and make it clear that a 401k, IRA or Keogh plan isn’t saving but it is in fact investing and emphasize it in its dealings with the public so they are informed on the fact, that they are investing and not saving for their future. These very facts would give the public the understanding and the knowledge to make different choices with their money and allow them to make better informed choices for their futures. Saving versus Investing is what will bring you out of the speculation and investing cycle that has keep you on the roller coaster of the stock markets clutches for so long.

We can now see that saving versus investing can be measured over a period of time and people that have been investing may at some point realize that they were putting their money at risk, now people could in fact blame the stock exchanges for their heavy speculative losses because those that suffered them weren’t properly warned or informed against what the risks were to their retirement funds and their retirement plans. Saving with a financial tool which increases in value when the dollar goes down and keeps its value when the dollar goes up can put you in an extreme advantage and allow you to take back control of your finances and even allow you to control the market if you will. Saving versus Investing can transform your funds in a short period of time and change your life in the long term. If you would like more information on saving with the correct financial tool then click the link in the resource box below.