Top 6 Ways that Real Estate Investment Property Returns Profits
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Transcript of Top 6 Ways that Real Estate Investment Property Returns Profits
TOP 6 WAYS THAT REAL ESTATE INVESTMENT PROPERTY
RETURNS PROFITS
WWW.HAYLENGROUP.COM
1. CASH FLOW FROM RENTAL INCOME
As with a stock that pays dividends, a properly selected and managed rental property will
provide a steady stream of income in the form of rental payments. Historically, this percentage of return has exceeded that of dividend yields on average. The real estate investor has a bit more control over the risks to that cash flow
also. Though there are downturns in real estate prices and homes sold in some years and areas, generally those renting property in which to live
will continue to rent and without a corresponding decrease in rent amounts.
2. INCREASES IN VALUE DUE TO APPRECIATION
Historically, real estate has shown to be an excellent source
profit through the increase in investment property value over
time. Of course, one cannot predict that this trend will
always be true, and it varies significantly by area.
3. IMPROVING YOUR INVESTMENT PROPERTY - MORE VALUE AT SALE
While it's providing rental income cash flow, your property can also be improved in order to garner a better price and more profit when you
do choose to liquidate it as an investment.
Upgrades to the appearance and functionality of a real estate investment property can
significantly increase value. As trends and styles change, keeping the property interesting
to renters will at the very least help you to retain value.
4. INFLATION IS YOUR FRIEND WHEN IT COMES TO RENT
Though your fixed mortgage will remain constant over time, inflation that drives up
home construction costs will also drive up rents. Population growth creates housing demand, again driving up rent prices if supply cannot
keep pace.
5. PAYING OFF YOUR MORTGAGE
As you pay down your mortgage, the increase in equity can be used for other purposes and
investments. Though it's frequently accessed by selling the property, a real estate investor can also
take out equity loans if the terms are right and use those funds for more investing or other
purposes.
6. YOU COULD JUST FIND THAT "STEAL OF A DEAL"
This is the last item, though it's one of the first ones many investors think about. There are opportunities to buy below market, but the
other advantages above will probably be what the average investor experiences most of the
time. Should you be fortunate enough and have the experience to locate a value-priced
property, this is an immediate way to increase your net worth and the value of your
investment portfolio.
Resource:- http://goo.gl/OX1G4z
Our Website:- www.haylengroup.com
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