Home

Budget Planning

Buying a Home

Investing in shares

Investing in Real Estate

Retirement Planning

INVESTING IN REAL ESTATE

Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last fifty years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.

This is an investment as old as the practice of landownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit.


Learn the secret to successful buying, selling and investing in real estate from the pro's. Great range of hand-picked books, CD's, DVD's and software from Australia's best selling authors - all home delivered within 24 hours. For more GO HERE.

Furthermore, the property may also have appreciated in value over the course of the mortgage, leaving the landlord with a more valuable asset.

There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments.

There is also the matter of finding the right property - you will want to pick an area where vacancy rates are low (due to demand) and choose a place that people will want to rent.

Secure your families future invest in real estate

Interested in making money in shares?

Looking for a loan or mortgage finance?

Enjoy life too - take a last minute resort holiday.

Perhaps the biggest difference between a rental property and other investments is the amount time and work you have to devote to maintaining your investment. When you buy a stock, it simply sits in your brokerage account and (hopefully) increases in value.

If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it's you who gets the phone call. If you don't mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands - for a price, of course.

The above information is from Investopedia see them at http://www.investopedia.com


We are not licenced financial planners and do not give advice on individual needs - always consult a licenced financial planner. 

  | Reserve Bank - Interest Rates | Personal loans and mortgages | Property Investing | Share Investing |