Friday, December 23, 2011

A Brief Overview Of Investing In Real Estate

By Reginald Branarll


Compared to other investment vehicles, real estate is somewhat capital intensive, and has relatively limited liquidity. Just the same, investing in real estate remains attractive because it rises in value over time, allowing you to earn a profit should you resell it down the road. When you think about other investments you could make such as those in foreign currencies and stocks, real estate seems like a more attractive option mostly because of the fact that the returns are a lot more assured, provided you know what you're doing.

Margin buying is also another advantage to real estate. This, of course, applies to most other forms of investments however, it is more prominent and to an extent, easier, in the case of real estate. This way, you don't pay the entire amount at the start but pay it in installments over time. You can, in this period, rent your property to cover the expenses and at the same time, make little profits.

Flipping these properties is a common way to make money. Flipping is nothing but buying and selling real estate in order to make a profit. You may buy an house and immediately resell it for some profits, or you may buy a not-so-good house at a low price, renovate it and then sell it.

It isn't that everyone is in favor of flipping to be honest. While flipping properties can, at times, mean better living standards for select communities, it can indirectly increase the living costs of certain areas.

In order to make wise decisions, you have to understand how exactly the entire process works. To figure out the value of a Washington DC real estate for instance you need to look at the price of houses in a neighborhood that have similarities in terms of structure, age, and square footage.

Proximity to amenities, structural upgrades can both drive up the price for a DC realty as well. The Internet is a good resource for prices of Washington DC real estate. If you are the buyer, the Web is also a good place to look for DC realty appraisers.




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