Course (persist)One of the major disappointments of the conventional, ental real estate approach is there’s just no money in it NOW, only after a long period of ownership. There’s not enough spread between the income realized from rent - versus - the expenses of mortgage payments and repairs for the investor to make any money today. You barely get by in the early years of your property’s ownership. You’ve got to have other income to support your lifestyle. You can just count on the rentals to support you. Most likely, in the beginning you’ll be supporting your properties with your other income if you bought via the traditional way. Real estate prices have risen nicely in the last few years and most buyers speculating in real estate have made some great profits, however changes are coming that will see the real estate price tumble in value and its already started. So if you would rather build your own capital, then consider buying your own home!Many home owners accumulate more money through appreciation of their property assets than they do working a full time job. Be warned, though, this is not always the case. As you know, the price of real estate can go down as well as up. If for some reason you have to sell your home in a down market, it can be a costly venture. In fact, you wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. Investment:Liquidity refers to how quickly an asset may be converted into cash. For instance, an investor in listed stocks has only a call a stockbroker when funds are needed. The stockbroker sells the stock, and the investor receives the cash. In contract, a real estate investor may have to sell the property at a substantially lower price than desired to ensure a quick sale.
Source: Simarc
