Real Estate as an Investment

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Appreciation in value – Though there are periods of flat or negative home price trends, the last 20 years show a universal up-trending of home values. Slowdowns or down-trends, far from a problem for investors, create buying opportunities. Recent mortgage industry woes, with accompanying foreclosures, have provided amazing opportunities to purchase livable homes at deep discounts, and in neighborhoods desired by renters. Owner improvements for value – You can purchase a property with potential for remodel or improvement, do the work, and realize value appreciation. Buying the smallest home in a neighborhood and adding a room can provide a positive value over the cost of the addition. Adding garage space or remodeling kitchens have been activities investors have used to add value to their properties as well. Dean Graziosi Inflation is usually your friend – While your mortgage remains fixed, inflation can allow you to increase rents, thus improving your return on investment…and that retirement lifestyle. Inflation, while damaging to the stock or bond investor, can increase the value of a property due to increased costs to build, as well as help the investor to raise rents for greater cash flow. http://www.aboutdeangraziosi.com