The buying and selling of a piece of property may it be a raw land, or a fully furnished house, or a condo is called real estate investing. The idea of it is to buy a parcel of land or a house and furnish it so it will be saleable at a much higher price someday with a developer. It could be also an apartment or a condo which can be leased by the tenants where the checks that you receive each month could pay for the expenses of the building and the difference you can keep as a profit.
The Pros. In real estate investment, you can see on four corners what you have invested for. You could sell it at a high price when the economy is good or you could refrain from selling it if the economy went spiraling downwards. It is a tangible form of investment. Real estate will always have value because whatever is the situation of the economy is, people will always need a place to live in and transact their businesses with. This is one of our basic needs that will never perish.
The Cons. Since real estate investments require all but a worth a dime financing, it is so hard to find a lending institutions that would finance a loan for investment property. Often, your money is not enough to finance a property so it may sell well. So until it sells, you are stuck up with debts after debts. Same goes with the rental property when the renter stops paying for rent you will end up paying your debts on your own minus the monthly paycheck of the tenant plus expenses in hiring an attorney to remove the renter through courts.
Where you stand. Balance the advantages and disadvantages above and determine where you stand at this point in real estate investments. Not all people do well on this area; others may venture in stock markets as well. Your comfort zone will be the determining factor whether to pursue the risks or not. If you feel that it is the best thing you can do and you’re good in this field, then carry on. Just bear in mind that this is all too risky for your financial situation. But if you get along with it, the prize is all too high for all it’s worth.
Always invest your money on long terms investments such as real estates. With so many available spaces which accommodate different kinds of budgets, you could go a long way in this kind of field. The only thing that matters is the confidence that you could grow your investment twice the figure you have started. If you have the fortitude and the patience to develop your investment and make it grow, you will surely become successful. And since money is made or lost behind every business there is, a lot of common sense might help.