Author Archives: ongkl
How important is location to an investment real estate?
It has been said that the three most important considerations in buying real estate are: location, location and location. This is most certainly true in purchasing a home but may or may not always be true when purchasing investment real estate. One advantage in investment real estate as opposed to your personal residence is that the door is virtually wide open when it comes to location and type of property you select. Your most important consideration is, does it meet your investment goals, such as cash flow and appreciation potential. If it meets these goals, physical location of the property may be secondary.
Should you invest in real estate through a company?
There are various other methods of taking title to a real estate investment. One of the most popular ways is through a private limited property holding company. There are several advantages to buy properties under a property holding company such as tax benefits and limited liability. However, additional cost and effort are required to run a company. Unless you plan to grow your company into a larger scale of property holding, investing through individual ownership is still considered more viable in the beginning until you have reached high personal income tax bracket or the maximum limit of personal credit allowed by banks.
Why real estate is a good investment?
Of all possible investments that are within the reach of the average investor, none ofter the combination of outstanding benefits that are available to real estate investors. Banks and life insurance companies recognise this fact! So they invest your money in real estate. While they pay you 1 to 3 percent for the use of your money, they are making 10 to 20 percent on it. Why is real estate such a good investment? It offers the investor at least five different returns or ways of making money, on his investment: cash flow, equity income, appreciation, leverage and control.
Where to find cheap properties?
“Cheap” properties are normally some “problem” properties. However, they are not necessarily bad investments. They may be poorly maintained, poorly managed or have continual vacancies. Perhaps financial problems or owner problems are creating the situation. This article discusses several ways of locating a “cheap” property and finding the property owner directly.
Don’t do this if you want to find investment properties on your own
Where do you begin to locate properties if you choose not to employ an agent or you prefer to do it yourself? Watching the “for sale by owner” ads is probably going to be your primary source of available investments. However, you will rarely see “for sale” signs on investment properties, as you do with houses, because most owners do not want their tenants to know that their temporary shelter is for sale.
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