Article Title: Can I Still Make Money If I Buy Real EstateRight Now?
Author: Tomas Morkenson
Word Count: 482Article
URL: http://www.isnare.com/?aid=56131&ca=Real+Estate
Format: 64cplAuthor's Email Address: articledistribute[at]gmail.com (replace[at] with @)Easy Publish Tool: http://www.isnare.com/html.php?aid=56131 ==================
A very common question and a very good one too, as the face ofthe real estate market has changed dramatically since yourparents first bought their place and quite a bit in the last 5years even. For a while it was an instant gold mine and if youweren’t able to buy real estate you were missing out on hugeprofits. Housing and land has appreciated in value atincredible rates which trump even the 10% per year average ofthe stock markets. The basic number that sticks in people’shead is the 7% per year and let me tell you for a while it was3 to 4 times that!
Thinking has also changed with the changes in laws and this hasmade the payment structure and the leverage that you have inyour house as an asset. It used to be that you had arrivedfinancially when you had your house and your car paid off andall of the money that you had been putting into these thingswas going instead into your retirement fund. That is no longerthe case. Now it makes more sense to use the tax deductionsthat you get when you buy real estate on loan.
You see liquidity of your assets is so much more important intoday’s fast paced and fickle market. You never know when thecurrent housing bubble is going to pop or slow and when yourjob is going to be revoked. You are not smart therefore if youhave $150,000 “invested” or more correctly locked into yourhouse. What if the house will only sell for $100,000 and youhave a huge health care bill for which you desperately needevery penny that you have saved into the house? Well the sadfact is that you have lost that money and there is no gettingit back, because you didn’t buy real estate in the right way.
On the other hand pretend that you had mortgaged the house andrefinanced whenever you could as the house appreciated. Youthen took the profits from these refinancing ventures and putit into a fund that could earn more money than you were payingin interest on the loan. Well you now would have a fund ofliquid cash that you could use for whatever emergency that cameup and you actually had more than if you would have simply paidyour house of not even thinking about its’ market value. Thisis made very possible by the fact that number one any interestyou pay on a house loan is interest that is tax benefited, andnumber two there are funds that you can put this money intothat are liquid, earn a better rate of return, are tax free!This is the real reason why it is a good idea to buy realestate.
About The Author: Being a market analyst has put TomasMorkenson in a great position to buy real estate as aninvestment and he loves to advise people in this area.
If youneed advise about real estate investing check outhttp://www.buyrealestatehub.info/.Please use the HTML version of this article at:http://www.isnare.com/html.php?aid=56131================== ARTICLE END
==================For more free-reprint articles by Tomas Morkenson please visit: http://www.isnare.com/?s=author&a=Tomas+Morkenson
Author: Tomas Morkenson
Word Count: 482Article
URL: http://www.isnare.com/?aid=56131&ca=Real+Estate
Format: 64cplAuthor's Email Address: articledistribute[at]gmail.com (replace[at] with @)Easy Publish Tool: http://www.isnare.com/html.php?aid=56131 ==================
A very common question and a very good one too, as the face ofthe real estate market has changed dramatically since yourparents first bought their place and quite a bit in the last 5years even. For a while it was an instant gold mine and if youweren’t able to buy real estate you were missing out on hugeprofits. Housing and land has appreciated in value atincredible rates which trump even the 10% per year average ofthe stock markets. The basic number that sticks in people’shead is the 7% per year and let me tell you for a while it was3 to 4 times that!
Thinking has also changed with the changes in laws and this hasmade the payment structure and the leverage that you have inyour house as an asset. It used to be that you had arrivedfinancially when you had your house and your car paid off andall of the money that you had been putting into these thingswas going instead into your retirement fund. That is no longerthe case. Now it makes more sense to use the tax deductionsthat you get when you buy real estate on loan.
You see liquidity of your assets is so much more important intoday’s fast paced and fickle market. You never know when thecurrent housing bubble is going to pop or slow and when yourjob is going to be revoked. You are not smart therefore if youhave $150,000 “invested” or more correctly locked into yourhouse. What if the house will only sell for $100,000 and youhave a huge health care bill for which you desperately needevery penny that you have saved into the house? Well the sadfact is that you have lost that money and there is no gettingit back, because you didn’t buy real estate in the right way.
On the other hand pretend that you had mortgaged the house andrefinanced whenever you could as the house appreciated. Youthen took the profits from these refinancing ventures and putit into a fund that could earn more money than you were payingin interest on the loan. Well you now would have a fund ofliquid cash that you could use for whatever emergency that cameup and you actually had more than if you would have simply paidyour house of not even thinking about its’ market value. Thisis made very possible by the fact that number one any interestyou pay on a house loan is interest that is tax benefited, andnumber two there are funds that you can put this money intothat are liquid, earn a better rate of return, are tax free!This is the real reason why it is a good idea to buy realestate.
About The Author: Being a market analyst has put TomasMorkenson in a great position to buy real estate as aninvestment and he loves to advise people in this area.
If youneed advise about real estate investing check outhttp://www.buyrealestatehub.info/.Please use the HTML version of this article at:http://www.isnare.com/html.php?aid=56131================== ARTICLE END
==================For more free-reprint articles by Tomas Morkenson please visit: http://www.isnare.com/?s=author&a=Tomas+Morkenson
posted by Ralph Marcus (Mark) Maupin | 12:54 PM
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