What Are You Afraid Of To Invest In Real Estate?
February 17, 2008 – 11:45 amThe misfortune that the real estate industry is currently facing is no longer new to everybody, thanks to the TV and the newspaper editorials. It’s everybody’s knowledge that real estate prices are on a downtrend adding to the people’s fear of buying or selling real estate properties. But witty investors see this unparalleled decline in prices as the time to do a lot of bargain hunting to prepare for the real estate rebound.
If you look back through time, you’ll see that 83 out of the last 85 years the single-family homes have been increasing in value. The only years they didn’t was during the times of the Great Depression. Other investments such as on precious metals, stocks, and bonds have not seen this steady increase; this is unprecedented.
Many events have occurred this past 85 years. Among them are the Korean War and the Vietnam War and we also had undergone recessions, inflation, and deflation. Landmark events have passed like the baby boom and the women liberation to progress into the computer, and the Internet age. But why do people still seem to avoid from real estate.
This is because people want instant result; a quick and easy way to earn money. Certainly the downturn in the housing market does not favor this get-rich-quick scheme, not unless you want to wholesale. Wholesaling is done by buying low and selling low.
But in today’s world where everything seems to move quick, people are no longer attracted to the idea of waiting for future gain. People fail to see the two benefits of the buy-and-hold approach; the depreciation and the tax advantages.
Some of the things that are holding people back are lack of tenants, vandalism, maintenance, negative cash flow, law suit, renovation, and foreclosure just to name a few. But if you think about it closely, no investment strategy is not without any challenges. Each one of these challenges can be overcome by a specialist or by teaching ourselves how to solve them and become expert in these areas.
As you can see, real estate investing could very well be your income earner and wealth builder. You just have to spend some time to learn how to overcome the challenges and be courageous enough to take calculated risk. Take a look at doctors; they endure years of battering school and incur huge debt just to attain success.
With real estate investing, it’s possible for you to accumulate wealth while avoiding debt during the process. You can enter into this business with virtually no money; all you need is wits and the ability to choose the right people along the way.
Real estate is perhaps one of the most proven income earners of this country. This business exists for almost a century now and it had kept a marvelous record since its birth. Almost the country’s entire millionaire came to be because they invested their money in this business. What’s keeping the rest from making huge income is their incapability to take an opportunity presented to them in real estate investing - anyone has the potential to make it big in this business.
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