Real estate investing may not be that easy as it looks out
to be. It doesn’t make any difference whether you stay in the US, or in the UK,
or any other part of the world, the key parameter remains the same. There could
lay a difference on how it is priced, but the underlying investment criteria
don’t vary a lot.
Many young people have been showing strong interest lately
in real estate investments. If you ask me, personally, I am not too convinced
about this idea. Younger ones should avoid buying a house purely as
investments. If you do that then you are playing too safely, remember, when you
are young, put your money onto something that might bring you money at a much
faster rate. Real estate investments at the age of 35 will make you lazy. You
may make money, but in reality you lose your creativity.
Though, you may certainly buy a home to stay. It’s a better
option to have your own home, than paying rent each month. What I intend to elaborate
is the fact that don’t buy properties with an aim to make investments when you are young.
Do you have enough
money?
Money is the key here. Not many like to buy properties by
paying cash on the spot, however, if you do that then it’s admirable. The real
problem crops up when you buy properties on loan. You must ask a lot of questions
to yourself, whether you would be able to pay in the longer run. How
financially stable, you are? Can you conjure money, when your back is against
the wall?
If you know that you might encounter problems while repaying
loans, don’t push into buying real estate properties.
Think taxes
Real estate investing is about taxes. There is the salaried class who want to buy homes on
home loans and avoid taxes. But, on the other hand, you should also know that
if you get a real estate property and give it on rent, your income will be
taxed. You must also find out what is the minimum period above which you will
not have to pay taxes on real estate investments in your country.
What if you are fickle
minded
Real estate business is not for the impatient lot. Those who
like to change their decision should stay out of real estate investments. These
investments involve patience, and your ability to wait before you choose your
options. Real estate investors also have a broader perspective in their
approach. They visualize their profit from investments, even before they
invest. They know their cards, and also know how to use them.
If you don’t fit in the criteria, avoid real estate and put
your money on any debt instruments.
Author - I am Rajiv Sighamony. Check the guide on how to buy $1 million homes for just $1,995.
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