Important Facts on Real Estate Investment

992 WordsFeb 4, 20184 Pages
WHY INVEST IN REAL ESTATE? This question is asked quite often by those who are looking for a way to invest their money. The answer is simple: The investment in real estate has always been the most powerful way to gain wealth. Nearly all of the worlds millionaires became just that by investing in property, in one way or another. The reason real estate investing is such a huge wealth builder is due to leverage. Leverage is the ability to profit from your investment by using the money of others, usually a bank or other lender. Lets take a look at how this can work for you. You have $40,000 you would like to invest. This may be home equity from your primary residence, or a lump sum of cash. You need to decide how you will invest this money to get the best possible rate of return. Deposit it into a savings account at your bank– Some people think this is the best option, after all it will be safe there, and you will get a small increase in value over time. Money in a bank savings– assumed – 4% interest. Deposit: $40,000 Five Years: $48,666 Ten Years: $59,210 After 10 years,
Open Document