Buying a property as an investment is probably one of the wisest decisions you'll ever make in your entire life. For so long properties are known to provide shelter, security and for some it could even generate income.
But it's not all that, nowadays investing in the housing market is quite a gamble and for some they find it risky. We could never blame them since the rates are so volatile and most houses are incredibly pricey. Sometimes it takes a lot of guts, research and luck to get the best house with the best price and be able to get a loan with a low rate.
Investing in a real property while the interest rates are still not that high would be a good move, though experts say that they could see an increase of rates in the horizon but you can never be sorry if you act soon and just be prepared.
Never forget that investing in real estate, the money generated like for example in your property for rent - the income does not go into your pocket because it goes straight to the bank or lender to pay for mortgage.
A lot of people are often in a rush to earn money from their real property investment, but the return of investment in rental properties take time. While properties used as residences does not earn anything but you get tax discounts just by paying your mortgage, however residential properties would still be considered as investments since you have poured money into it and with the hope that it will provide security and shelter, and in the future hoping that it would gain equity and increase its value.
Somehow you now have a picture of investing in real property, but if it is your first time in venturing into this, you might need to get the opinion of an expert and ask for the ins and outs of the market. The best people to ask for reliable info are relational brokers, real estate lawyers and the likes. Check out for reputable professionals whose expertise is on real estate through legitimate realty professionals organizations.
Once you've got everything covered - the right property, the right location, the right lender, next thing to do is carefully read the mortgage contract to check for flaws, once everything is good, you may start advertising the property for rent so you could start getting tenants and start earning from it.
But didn't I say that home for rent is not the only way to earn money from real estate? There is also the real estate trading, the wild side in venturing into this market. This is totally a different league from the buy-and-rent investors or landlords. Traders in real estate buy properties and hold them for a few months and then sell it after to gain profit. It is also called as flipping properties where they buy significantly low-priced houses or those properties in highly in-demand areas.
There are two kinds of property flippers; the pure property flippers who will never put money into a house for repairs and alterations. They do this as a short-term investment and should be able to dispose of the property in a short possible time so as not lose money.
The other one is what they call the second class flippers who would buy properties and would add value to it by doing renovations and repairs. This could be a long-term investment since it would take time to have it sold because of the repairs. But whatever kind of flipping you intend to invest in, with the current situation of the market, I'd say it is wise to start flipping properties since it is definitely a seller's market.
Georges Kfoury is the CEO of Leaderscorp Financial Corp., a leading provider of affordable home mortgage loan in California. He is driven to providing equal housing opportunities through affordable home mortgage and easy refinancing programs that would let homeowners stay in their home and achieve the American Dream.