Article
Equity Building Through Real Estate Investment
Real estate investors have a large sphere of opportunity. Some of the largest fortunes in the world are built on the strategy of owning and managing valuable real estate and acquiring an investment property. This is true because real estate touches everything that we do. In a given day every person living on this planet will use or benefit from many real estate properties, directly or indirectly. Everyone lives on the land and there is only little of it on our planet which is livable. A lot of it is used for agriculture, other used for industries, hospitals or clinics. There are school buildings and factories, and warehouses stores. Other example of buildings that may be privately owned are Theaters, museums or galleries. Churches and temples shelter our gatherings for spiritual work. Transit structures enable movement around the globe. Hotels and time share condominiums provides everyone with the luxury of comforts in this world.
It is this characteristic of land, especially shelter, from which economic values of real estate are derived and this is also where most real estate investors get it fundamentally wrong. As a result they either fail to make money or fail to make as much as they should with minimum risk. Human beings have constructed many types and styles of shelter giving the real estate investment property a vast canvas on which to paint their picture of wealth. Out of so many choices the widest, deepest, most liquid market is that of residential housing and owing investment property. A question that has to be answered is that, how can an investor add value to a family's use of their home? The answer is quite simple- by becoming the house owners and investing in investment property.
Most people think that homeownership is more valuable than renting out their property. This way they feel that can add more value to their homes. But let us consider one case study done by the United States Federal Reserve Bank, as we all know, this bank has full control on our nation's money supply.
According to to real estate in america.com - 'In 2003, the Federal Reserve commissioned a study about the value of homeownership. They statistically compared the financial characteristics of demographically similar renters and homeowners. Practically, they looked at the difference in net worth of individuals in these two groups. Renters had an average net worth of approximately $5,000.00. Homeowners had an average net worth of approximately $172,000.00. Nearly 70% of households in the US enjoy homeownership. That means that over 30% do not. The number of estimated households in Washington State in 2000 was 2.3 million.' That means there is a potential market of 690,000 in Washington State that might wish to own a home but are currently staying on rent. Given a chance every one would want to invest in real estate and become a proud owner of an investment property. If invested properly in real estate one can really make a great fortune.
- Go back
Sign up now to learn about new condo developments and investment opportunities.
