Property Investing - Is Real Estate Your Ticket To Financial Freedom?
September 4, 2008
Did you always enjoy playing Monopoly as a kid and later as a grown-up? Does not matter how many times you were beaten, bankrupt or even stealing money from the 'bank', you always came back for more. Maybe this time you will acquire the choice properties, landing every unfortunate player on your hotels - everything decided by the roll of the dice.
Luckily real life is not decided by the roll of a dice, allowing you to gain equal access to every choice property out there. You just have to go and look for it. Take the scenario where you find a rental property with appraisal value of $100,000 and a selling price of $80,000. Monthly installments on a 80% mortgage amounts to $1,000 (for clarity sake), with a rental income of $1,800 - giving you an estimated positive cashflow of $800 per month (neglecting other deductions in this example for simplicity). In other words, after your 20% cash deposit, the property will pay for itself, in excess of an extra $800 cash in your pocket every month! You will not get this when buying a car, boat, golf clubs or any other luxuries.
The real test will be to obtain these gem properties, because they do not lie around every corner. So, for starters, you should try to put away some money every month until you have at least $10,000 available to obtain your first property. A good credit rating also helps in obtaining a decent mortgage deal from the bank. While busy saving you can invest in knowledge of real estate investing, as well as screening potential properties currently on the market. A good place to start will be bank repossessed properties and foreclosures. Try to attend as many real estate investing seminars, workshops, etc., and read as many literature on the subject.
If you are serious about making it in Real Estate Investments be prepared to put in a lot of time in gaining knowledge on how to acquire real estate deals of the century. Talk to mortgage brokers, financial planners, real estate agents, etc. to gain the necessary momentum. Here's to making it big in property investing!
Francisco Lakay is the author of the exciting site Real Estate Property Investments, where you will find free information to becoming a real estate investor.
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