Advantages And Disadvantages Of Real Estate Investing
If you are beginning real estate investing then you are probably interested in what the advantages and disadvantages of this investment strategy are.
I have listed some of the major advantages and some of the major disadvantages of real estate investing as well as what to do about the disadvantages.
The major advantages of becoming a landlord are;
1. Rent Money
Of course one of the main benefits of real estate investing is that you get a money every month that you have a tenet renting out the place. This can lead to a passive income stream that is only going to grow as you raise the rent in the future to account for inflation.
2. The House Appreciates Over Time
Houses are very valuable assets. As the human population continues to exploid and as we all try to live on the same amount of land the value of land will of course appreciate over time. Throughout history landowners have been amoung the riches people in the world and I don't see that changing any time soon.
There are also some disadvantages of real estate investing.
1. You Might Have Problems With Tenets Not Paying
Tenets do agree to pay you rent. But what happens if they don't? You have to go through an eviction process and it is a real hassle. You might at times go through 6 months or more without rent money but still have to pay things like the mortgage on the house.
2. Property Damage
Tenets may also damage the property in which case you will have to repair it. Tenets don't really care about a property as much as the landlord does, so they can give you some added expenses.
What can you do about these two problems? One thing you can do is to create a lease to own agreement instead of simply renting out the property. This way the tenets feels like they own the property and will take better care of it and pay the rent.
Investing into the real estate market really can be a great way to build your wealth over the long term. It is something to look at when planning your financial future.
Article Source: FxTradingStock.com
About the Author
Real estate investing is just one of many ways to create some extra income for yourself and to build your wealth.
by: Shaun Rosenberg
Total views: 44
Word Count: 387
Date: Tue, 29 Jun 2010
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