im 25 yrs. Old engg. Graduate.im Indian citizen.i am a biggnerr in real estate.i just want to know,whether investing in real estae is more riskier than saving money.is there are some ideas regarding investing in real estate profitably without any kind of risk?shuold we trust agents?
2007-08-07 03:49:16 · 6 answers · asked by vicky27 1 in Business & Finance ➔ Renting & Real Estate
With ANY investment, there will always be risk. You didn't say where you would be interested in buying. The market being what it is today in the US, do not look for short term profits unless you are willing to put in time and energy fixing up old houses and renting them out. The one bright spot in my area has been commercial highway frontage. My town is growing into a small city with many new strip malls going up.
In Florida, tax sale notes can be a good investment. The interest rates are higher than what you would get from a bank, and if the owner does not redeem the note during the two year period, the property is yours. Look at the property first, to make sure it is something that you want to own.
Many people also use the REIT or real estate investment trust to spread out the risk and not have their eggs in one basket.
Agents only get paid if a sale is made. I am a Realtor, and I have seen many good eggs and some rotten ones in my profession. Agents owe their clients a certain amount of disclosure if they know of defects that a property has. A lot depends on the type of representation that they are giving you, whether they are working as a buyer's agent solely on your behalf, or as a transaction broker, which enables them to work both sides of a deal-some states do not permit this, but Florida, where I am licensed does. Your contract to purchase should have a specified time for you to perform your inspection and due diligence/ feasibility study. Make sure you do your own due diligence or hire outside professionals such as inspectors- do not depend on your agent to do your work for you. Also, you may want to ask around regarding the quality of inspectors and appraisers, since the home inspectors hired by the agent who represented us when we bought our home (before I was licensed myself) were not good.
2007-08-07 04:05:35 · answer #1 · answered by dottye7777 2 · 0⤊ 0⤋
Investing in real estate is risky. Investing in anything has some risk. If you are a novice, look at REITs. Real Estate Investment Trusts. They all pay dividends. Over the long run, the value usually increases.
If you buy individual properties you have to be an experienced professional to make money. Many people end up doing a lot of work managing properties for free.
2007-08-07 10:56:46 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
The best long term investment is a mutual stock fund, such as Vanguard or Fidelity. They are safer than real estate and statistically outperform real estate. Real estate can be good, but it has lots of problems. You pay tax on it every year, have to keep it up, and there are more legal costs associated with it. It's also harder to resell and if you need your money in a hurry it's much less fluid. Stock funds are, all in all, the best way to go. Find an investment firm to talk about the many options. A good place to start is www.daveramsey.com
Kent in SD
2007-08-07 11:00:19 · answer #3 · answered by duckgrabber 4 · 0⤊ 0⤋
Buy well below market value, in a desireable area, flip or rent. Real estate is always a good investment if done wisely.
2007-08-07 11:23:30 · answer #4 · answered by Rein 5 · 0⤊ 0⤋
Sometimes it takes a risk. Because we don't know who are the agents. We dont know her background. But if we know the agents,or maybe relatives we should trust it.So, its safer.
2013-11-09 04:54:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
some wat ok
2007-08-07 10:54:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋