In hear people saying that you can become rich from buying and selling or renting out property but how does it all work. I mean how long after you buy it do you sell it? Or do you remortgage it? Do you have to own lots of houses?
2007-04-27 13:03:37 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Real estate investment is a get rich slow scheme, not a get rich quick scheme. You have to be in it for the long haul.
There are many books on the subject. Visit your local library.
Most property increases in value slowly over time. It may fluctuate, but that's the way the economy works. You'll have to learn to handle uncertainty if you want to be a real estate investor. But, it's a heck of a lot better than investing in the stock market. However, it is actually possible for your property to decrease in value and you still make money, if the rental market is strong in your area.
By renting out a property, you may find that it's in your best interest not to sell it after a while, because it's bringing in plenty of passive income, and, if you sell it, you'll have to pay taxes on it. There are capital gains laws but they only apply to the home that you live in. If you are in the rental business, it's a different story.
My advice is find a property manager that you can trust, and that will give you a 95-96% occupancy rate. You don't want a 100% occupancy rate because that means your rent is too low.
The hardest part is getting started. But once you get started, you'll be hooked!
2007-04-27 13:51:32 · answer #1 · answered by The Real Deal 5 · 1⤊ 0⤋
You need to buy low and sell high, and you need to invest a significant amount of sweat equity--in other words, you need to buy homes which require some work and you need to do the work yourself to keep your investment as low as possible. Renting can work, but often you won't have positive cash flow.
The "ease" of making money on property assumes that property values are going up and that mortgage money is cheap. Both of these have been a challenge recently, which is why many who got in this business and had a few good years are now totally over their heads and having to sell at a loss.
2007-04-27 13:08:48 · answer #2 · answered by Still reading 6 · 2⤊ 0⤋
This time next year you can have one millions dollars you need to start out with two millions dollars today.
http://www.breakingbubble.com/
2007-04-27 13:49:01 · answer #3 · answered by Anonymous · 0⤊ 1⤋
buy low sell high
2007-04-27 16:13:55 · answer #4 · answered by Anonymous · 0⤊ 1⤋