The question is, “What is real estate investment?” It cannot be answered without considering first, this is a textbook definition and then a conceptual definition.
Real estate has been defined as land (or non-moving properties) along with anything that is permanently affixed to land such as building, and investment is an act of using money to buy property for the purpose of holding or leasing for income. It is safe to say it (combining both definitions) that real estate investment involves acquisition of real estate (or investment in real estate) for the purpose of generating income, resulting in profit, and gaining wealth.
Leverage is different from stock investment (which usually requires more equity from investors), it is possible to utilize real estate investment (weight). With real estate investment, you can use other people’s money to enlarge the rate of return and controlling a much greater investment if it is not possible.
Real estate investment tax shelter provides tax benefits. There is a reward for the cash flow after an annual tax, the accumulation of equity through asset appreciation, and cash flow after tax after sales.
Non-monetary real estate investment provides pride of ownership, security that you control ownership, and portfolio diversification.
Real estate investment is not a rose bed. Real estate investment does require capital, there is a risk, and rental properties can be intensive management. On the other hand, the car that you drive is needed, it involves a risk driving, and of course requires management. The difference is that the car is not a source of wealth.
How to become real estate investors
Develop real estate investment goals. What do you want to achieve, and when do you want to achieve it? What is the rate of return that you expect to want to receive it in the room you pull out of your home or bank account to buy an investment property given risk?
Learn back what you have to look for, and how to calculate it. You can’t succeed in music unless you can read music. Invest a good real estate investment course or real estate investment software where you can learn how to run a return and calculate formula.
Be careful to get a rich scheme. There are many called teachers who are ready to teach you how to make millions with real estate investment property. But let logic be your guide; We believe that no one found a gold mine published a map.
Create relationships with real estate professionals who know the local real estate market and understand rental properties. It won’t advance your investment destination to spend time with “agent this year” unless the person knows about investment property and is quite ready to help you get it correctly. Find agents who understand real estate investment.
What is the conclusion? Real estate investment is a business about having land which, when researched and bought wisely with numbers that are impartial and careful management, and with reasonable goals and caution, the possibility will be more valuable than today.