Advantage of Real estate investment

**snvtanmay** · 02-02-2010, 01:46 PM

The first and one of the easiest ways to make money is from the cash flow from rental properties. If you have individual homes or houses in apartments, you can rent those properties to make a steady flow of income for many years. This is considered to be a safe way to make money. An after a couple of years you can increase the rental. However the size and location of your property plays a role in making money! When it comes to renting, inflation is your best friend as this will increase the cost of construction price and the growth of population causes a demand for housing which will be increasing the value of the rented properties. When there is appreciation there is always an increase in value of properties. Real estate has an outstanding source of profit over a time, but no one can guarantee about this trend and it varies based on the area.

**Sam Rasain** · 02-02-2010, 05:28 PM

Great read, it would be interesting to see what type of profits (monthly) people are getting on the average rental, if a profit at all.

Sam

**enthusiast.** · 02-02-2010, 07:36 PM

interesting article, thanks. I have to agree too. The rental market can seem tricky but in the long run has been great. I have a few rentals that aren't necessarily profiting for me every month, but I attribute this (more like make excuses) to the fact the area I live in has a particularly low ROI, and high property taxes. I'm about breaking even ever month, with some change after the mortgage, taxes and improvements. I've recently learned (with the help of this site) that there are other places that have extremely high returns. Almost 16% a year in Turkey, I believe. It would be interesting to learn more about it and possibly invest later, but I'm reluctant to enter the international markets.

**Carla** · 03-24-2010, 11:21 AM

Agree with you

**sonia275** · 04-02-2010, 09:15 AM

if you intent to buy a proeprty to rent, then get a repayment mortgage (as opposed to interest only) where at least your mortgage capital is cleared over time too. Its something a lot of investors overlook today!

**Peter Bivolarsky** · 04-02-2010, 12:55 PM

Originally Posted by sonia275

if you intent to buy a proeprty to rent, then get a repayment mortgage (as opposed to interest only) where at least your mortgage capital is cleared over time too. Its something a lot of investors overlook today!

I agree entirely with you!

**Luxury Homes Tampa** · 04-04-2010, 11:49 PM

# When buying single family real estate, you can do one unit at a time.

# Real estate investment can be good business experience for those who are not necessarily business oriented.

# In order to qualify as a real estate investment trust (REIT) for tax purposes, a company must return at least 90% of earnings to its shareholders in the form of dividends. Because of this, the average REIT boasts a roughly plus-6% annual dividend yield.

# REITs aren't as highly correlated with the major indices as most industries are. As such, they may provide your portfolio with some much-needed diversification and should help to smooth out your overall returns, particularly during market downturns.

# REITs own hard, tangible assets, such as land and buildings, and often sign their tenants to long-term lease contracts. Because of this, REITs tend to be some of the most stable companies on the market.

**julieCEO** · 04-05-2010, 04:25 AM

Well it is right that you have stable income from rent. But ROI (Return on investment) is most consideration part. If you are investing 200k$ on your property and you are getting few dollars as rent then it would not be a big deal. Then you are in loss.

**MichelleD.** · 04-05-2010, 12:53 PM

I totally agree with you. I have one apartment building and I am really investing a lot of money on it which is a good source of income since I earned monthly payment from my 4 tenants.

**rehabrealestate** · 04-07-2010, 10:34 PM

Instead of watching idle real estate investments be eaten by the earth, repair them and sell them instead. Rehabbing is a good way to make money in real estate, especially if you are a handyman. Handymen love doing home improvements. However, you will need financing for this investing option. You can go to private lenders and use the property as collateral. There are a lot of private individuals who are looking for opportunities to earn money with their extra cash today.