Real estate investment has several distinct characteristics very different from financial investments such as shares in the stock market, bonds and futures.

The immobility of the property (land and building), the importance of the location of assets, the high value of the property and the degree of indebtedness and the difficulty of liquidation are all important attributes to consider when we want to invest in real estate.

Why do you want to start investing in an income property rather than elsewhere? There is more than one reason to answer this question... First, the creation of wealth generated by the financial leverage due to the mortgage can rapidly increase your assets.

Then, monthly rents provide a stable return. Professional consider that the average real estate investment give back to the holder an annual rate of between 7 and 15%.

The potential added value that a building generates during few years and the tax benefits due to operating cash flows and capital gains are also excellent reasons which leads the investor to start a real estate investment.

Still, investing in real estate can represent a high risk, contrary to popular belief. Innoccupation high rate, the variation in interest rates, the risk associated with construction (hidden defects) and liquidity risk are just some examples of risks that real estate investing can embody.


Market research
Many attributes can affect the nature of a real estate market research. This should take into account several attributes that are described briefly below... Continue reading

Supply and demand
The supply and demand in real estate are fundamental concepts to control carefully. It should be understood that the property market evolves more slowly than the stock market... Continue reading

Real estate market
Each real estate market is different and should be studied individually. So, every city and town is a distinct market and can be very different in terms of price and... Continue reading

Risk and profitability
The risk of an investment property should be checked and calculated at all critical stages, whether for purchase, negotiation of the mortgage or disposition of the property... Continue reading

Investment value
Note that the value to be used by an investor in real estate is merely summarized by the market value. However, other real estate functions require different methods of... Continue reading