| The first step to building wealth through real | | | | Real estate has historically offered investors far |
| estate investing is to buy your own home. | | | | better returns than most other investment |
| Instead of making rent payments that pay off | | | | options. |
| someone else's property, it makes more sense to | | | | With most banks prepared to finance ninety |
| make mortgage payments to pay off your own. | | | | percent of the value of property values, you only |
| This way you not only are not only investing your | | | | require a deposit of ten percent and the ability to |
| payments in a property, you are able to take | | | | make the monthly payments to repay the loan. |
| advantage of capital gains. | | | | Therefore, if you buy conservatively you place |
| As you increase equity in your home, you will be | | | | yourself in an ideal position to make excellent |
| able to use it to help you purchase other | | | | profits. |
| properties. | | | | In fact, real estate has traditionally returned |
| After purchasing your own home, the next most | | | | substantially more than average stock market |
| common step in real estate property investing is | | | | investments over time. |
| to buy a rental property. | | | | As well as building long term wealth, property |
| If you buy well and get a good rental return with | | | | investment can offer tax advantages under |
| minimal outgoings you will not only take advantage | | | | certain circumstances. |
| of capital gains but the rent you receive will go | | | | Get advice from your accountant as to whether |
| along way to paying your mortgage. | | | | your circumstances would allow you to claim tax |
| As you gain equity in your property and pay | | | | benefits. |
| down your mortgage, you will be in a position to | | | | Another advantage of real estate investing over |
| purchase yet another property and repeat the | | | | stock market investing is that the prices are |
| process. | | | | flexible. |
| You need to be careful to minimize the risk by | | | | With real estate you can make an offer that is |
| buying properties at below their market value, | | | | lower (sometimes substantially so) than the asking |
| preferably when market prices have dropped. | | | | price. |
| This is because real estate prices increase over | | | | Stock market prices are set and do not allow you |
| time and if you are prepared to hold onto | | | | any room to move. |
| property, you will always make money in the long | | | | As a result, you can sometimes get excellent |
| term. | | | | property buys when the seller needs to sell |
| Unless you are wealthy, you will need to take out | | | | quickly and is prepared to accept your offer. |
| a mortgage to buy real estate property. | | | | All in all, investing in real estate is a wise choice |
| A mortgage loan uses property as security for a | | | | that offers excellent long term returns and |
| loan on the property. | | | | sometimes even substantial short term gains. |
| A mortgage allows you to purchase real estate | | | | You can begin small with a ten percent deposit on |
| with a down payment and repayment terms so | | | | an affordable property and gradually accumulate |
| that you do not have to pay the full value of the | | | | investments in your property portfolio. |
| property immediately. | | | | Real estate investment is generally a safe |
| If you default on the payments, foreclosure | | | | pathway to personal wealth and retirement |
| requires a judicial proceeding which provides the | | | | funding as long as you behave conservatively and |
| borrower with some protection. | | | | wisely. |