June 17, 2007

Financial Express

More people become millionaires through real estate investments than any other method. Investing in real estate is a great way to accumulate wealth quickly. Don’t miss out on it, as it is one of the best investments around. Just learn how to invest. Designing an investment portfolio that fits your needs is always a complex process. Unfortunately, many people neglect real estate as one of the most attractive ways to diversify their investments because they aren’t aware of the variety of ways it can be included. In the past few years, the real estate market has exploded and the opportunities to invest in it either directly or indirectly have grown to keep pace. Individual investors should always consult a professional if they want to design a portfolio that properly balances the opportunity for greater gains against possible risks. This will vary depending on where you are in life, what your retirement plans are and a host of other factors. However a few simple things should be kept in mind.

Diversifying is always essential to design a good investment portfolio. That is, you should never have more than a third of your investments tied up in any one form.

Learn as much as you can about the individual categories and the risks involved in each. Generally speaking, stocks and bonds are somewhat safer, but show a slower return, although it does tend to be steady. Commodities (precious metals, oil, natural gas, etc.) are riskier but offer greater return.

Mutual funds can provide you with the power of group purchasing when investing, while spreading the risk over a larger group of investors.

Real estate is often neglected when designing a portfolio unless the individual is purchasing property himself. Actually, the best way to invest in real estate is often through what is called a Real Estate Investment Trust (REIT). This is an entity set up specifically to invest in large properties such as hotels, high-rise properties and malls.

You can also invest directly in real property without becoming a part of an REIT. After all, the need for real estate will never go away, and land generally increases in value over the period of time, so it’s a relatively good investment strategy. It’s a low-risk strategy that historically has shown to be quite profitable in most cases.

When adding real estate to your investment portfolio, be sure to do the research and legwork to educate yourself. Study the market in your area, learn all you can about any property you are considering and decide whether becoming a landlord or flipping properties will be more lucrative in the long term. Its important to know if you have enough available cash flow to be able to keep your property until it’s value has reached the point where selling makes the most sense. To include real property in your portfolio, you need to periodically check the market and make sure the property is working for you in the most profitable way possible.
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  • I hope FE would also have included the number of people going bust because of RE... as has happened in the recent meltdown.

    VK
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  • Investing In Real Estate Is A Good Idea

    Hi
    Investing in Real Estate is a good idea.I have a good idea for this.
    Property in Turkey
    TURKEY IS THE PLACE TO BUY PROPERTY
    INVESTORS, HOLIDAY HOMES OR FOR RETIREMENT.
    Property is freehold
    • Value for money - prices start at £25,000
    • Mortgages available - Buy to Let available
    • Property prices increasing by 10% per annum PLUS
    • UK banks recommending Turkey - ”…one of top 5 places to invest over next 3 years.”
    • “A Place in the Sun” magazine says in top 3 places to buy
    CommentQuote