on previous experiences, real estate property is an investment
opportunity that more often than not, shows a consistent growth
in value. Compared to many other investments it is a more
stable investment choice and can generate significantly greater
returns. What you need to consider in the long term picture,
is whether you are willing to wait for the real estate investment
to bear results. Also, you have no actual guarantee that your
investment will generate the type of returns that you are
Short Term Goals
Real estate can be an excellent investment option in the short term if you purchase property in a geographic area that is increasing in value quickly. Although high growth markets can at times offer risk and reward, as localized economic conditions can change, which in turn can negate your ability to generate short tem return with your real estate investment.
Other aspects that need careful attention are whether you are willing to deal with tenant problems if they arise and/or exposing yourself to potential legal or financial troubles by extending your financial position in a manner that may constrain your financial flexibility.
Creating an Investment strategy that fits your specific financial position is extremely important – as real estate investment, though lucrative needs careful consideration, as you can be putting significant amounts of capital at risk with an investment that is impacted by issues beyond your control
An excellent strategy involves purchasing real estate at bargain prices that are at least 20% below the current market value – assuming you can find these types of investment properties. Alternatively, many real estate investors choose to buy a property at the current market value and then increase the value of the property by tapping into its unrealized potential.