Posted by: dagmarsands | April 3, 2010

Increase Your Savings through in Real Estate Investments

If you are looking to increase your savings through real estate investment, you should be aware of making all the right choices so you go higher up in the property ladder. The idea here is that when you generate profits out of a sale, you should reinvest the profit as well as the original money into another property that is higher in terms of value compared to the first one. This will allow you to make a much higher profit even if the rate of increase is the same. You could move on to a property located in a much more expensive neighbourhood. If you want, you can simple purchase one that is larger in style and higher in quality than the first one. From starting out with small apartments and then moving on to single family houses, you can end up with plenty of properties for your portfolio.

It seems quite sensible to spread around all your savings if you have a lot of it – around two properties or more. It ensures a safety net if in case one of the properties ends up being less profitable. You could also invest it in different types of properties in various locations and also with different intents. You could buy one for regular income or you could buy some that are for making faster profits because they are, for example, foreclosed properties.

Always remember that real estate investment is a process that is considered as long term. Typically, growth is generated at around thirty years. This type of investment also needs close monitoring and working on. If you just buy a house then sell it in thirty years, you are not really considering its worth and value and you could end up making smaller profits. It is sometimes best to consider consulting with a professional if you feel that you have little experience in real estate.

Knowledge is indeed power when you are talking about real estate portfolio management and in this case professional advice will help a lot. You should keep close watch on market happenings especially when you are already in possession of a property and you are interested in purchasing another one. Always be aware of property types, locations as well as demands of buyers and renters.

If you are thinking about buying and selling properties, you need to have more information about it. These include knowing if there are repairs you need to do and the estimate of such a cost. You also need to know where you can get tenants to rent out such a property as well as the rate they are most likely able to pay. Other things include knowing of any other properties like yours and how much they go for. Be a bit conservative when making estimates of properties and assessing the value of one, but extend this estimate if repairs or renovations are required. This is a great trick in making sure you do not end up shelling out too much for new properties.

Beverly Manago is a freelance writer focused on the real estate industry. She is also a consultant for My Single Property Websites, a web 2.0 marketing tool that lets real estate agents create stunning virtual tours and single property sites easily, with a free version available for listing presentations. She also contributes to the Online Real Estate Strategy there.

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