People mistakenly think that real estate is an area for investment in a global market sense. They think that it is going up or it is going down. That’s completely wrong. Individual real estate is going up and individual it is going down. The market isn’t going anywhere.
There is no macro market where you say real estate is going up or it is going down. The overwhelming determinant of real estate investment success, the 90% equation, is the individual building. The 8% equation in property investment is the city, the town, or overall city and state going up and down. The 2% equation is the market, how much the market is going up or down.
Fundamentally, no matter what happens to the economy, people still need a place to live. They still need some place to shop for food. So, in other words, real estate is still viable. When you are dealing with real estate investment what determines its success or failure is the individual property.
I believe property investment will always be an excellent choice when looking to create a passive stream of income. What dictates whether or not you will see some success in real estate investments is the market you decide to purchase in. Everyone is all up in arms with what they are calling a disaster. This could not be farther from the truth.
What the everyday public is seeing are the over sensationalized stories of mass foreclosures, live evictions, vacant homes falling into disrepair. This is not the actual picture of the market. As a matter of fact this has nothing to do with property investment at all. What the public is seeing are the over zealous home owners that bit off more than they could chew.
There is no true collapse of the market, to the contrary the wise investor has even more opportunity available to him or her then ever before. What the public is seeing or hearing on the news are reports of loss and despair for some families and this is being reported because it sells. To base your entire investment decisions on what is reported in the daily news, tells me that real estate as a whole is something you should not be involved with.
Real estate investment is and most likely always will be an excellent source of passive income. To be successful in the market you just have to remember to keep it simple, because in all essence the entire process from top to bottom is quite simple and straight forward. Decide what your goals are, make a plan and follow through! I guarantee that if you follow those guidelines you will do financially well in the market.
Real Estate Investment - Good Or Bad? This Will Answer the Question
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