subject: Invest In Property - A Couple Of The Main Ups And Downs Of Investing In Property [print this page] There are all sorts of different advantages and disadvantages of investing in real estate. As such, if you want to invest in property it would certainly be a good idea to you to consider the benefits and risks of doing so before you lay down any sort of investment.
This first consider the benefits. Well, the main one of these is simply the fact that investing in property can give you income for life. If you invest a lot of your money into rental properties then you can simply read these out and build some high monthly income streams. If you have enough properties and this can be sustainable for life and as your portfolio grows, you can grow rich.
In addition, you can leverage off all sorts of other people if you want to invest in property without necessarily having to suffer personal financial risks. There are many things you can do in order to build a portfolio without having to put a great deal of your own money into the pot, and this is certainly a significant benefit.
Of course, the fact that property is very unlikely to decrease significantly in value over the short term is also a major benefit. If you were to invest in some stocks or shares then these could easily plummet due to all sorts of different market conditions. While property can begin to gradually decreased, sudden increases and decreases are very unlikely to occur.
However, as mentioned, there are a number of disadvantages as well. One of these is the fact that if you are unable to cover the mortgage payments on the property you will lose it and this will have a significant knock-on effect to your credit rating. This, in turn, will make it more difficult to secure funding for future property investments.
In addition, as an investor in property you will be dependent upon a number of other people to be doing their parts. For example, if you bring people in to a property then you will really be dependent upon their rental payments. If they cannot pay the rent then you will have to use their security money in order to do so and will have to find some new tenants quickly.
Of course, things can also go wrong in various properties as well. Just when you think everything is running smoothly a boiler will break or a washing machine will spill water all over the kitchen and you will have to deal with the cost and hassle of repairs.
by: Mike Withey
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