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real estate no longer holds the status of being an investment that will always
appreciate, owning property is nonetheless one of the safest and stablest
investments that a person can make. When investing in real estate, the
investor is gaining ownership in property, which can never be stolen or
destroyed, and an improvement upon that property -- a house or building --
which can be rented to tenants for profit. Ultimately, this leasing of the
property can pay for the investment itself and yield further dividends beyond
Investing in either undeveloped property or real estate will always pose a
risk to the investor. As recent economic events have indicated, real estate
always presents a possibility of depreciation. Property values, after
ballooning beyond market capacity, have declined sharply across the globe.
Nonetheless, property owners who use their real estate as a means for
producing income continue to benefit from this income despite the decline in
the assessed value of their properties. Owners of stocks, bonds and other
financial instruments have lost both assessed value and the possibility of
income from these investments.
In addition to considering risk, property owners must consider the liabilities
inherent to property ownership. Maintenance, upkeep and insurance are variable
costs which property owners must be prepared to absorb at unexpected times.
These costs must be factored into the cost of the investment when considering
if owning real estate makes fiscal sense for an individual.
The first step to becoming a property owner is to assess the amount of money
that will be available for monthly payments, incidental costs and a down
payment. Close adherence to this budget is essential to making a real estate
investment that will not result in a financial crisis if the property loses
value, nor require a risky "creative" mortgage that might imperil ownership of
the property with balloon payments or sudden interest increases.
Once a budget has been determined, the prospective property owner needs to
embark upon a search for a property meeting the budgeted limit. In addition,
the prospective owner needs to ensure that the market value of the property --
and the comparable rents in the area -- will enable him or her to make the
investment worthwhile and guarantee sufficient income to cover the mortgage
and incidental costs. The owner needs to further determine a budget for any
renovations or improvements which will enable the property to garner a higher
Closely adhering to these steps will enable a prospective property investor to
make intelligent decisions and reap the rewards of their investment.
| Property - probably the largest choice of Property in the UK!|