Real Estate: Financial Independence
Real estate is defined as a property that comprises of any land area with either constructions on it, or natural resources such as crops, water etc. Similarly, real estate investment covers any of the following: purchasing, owning, managing, and sale or rental of one’s property for monetary gain. Real estate investing forms one of the most prevalent ways used by individuals to become wealthy.
Here’s How to Explore Your Gains
One can initiate by purchasing real estate such as a house, an apartment, commercial space, retail space, etc followed by renting it out. You can surely receive monetary gain from the appreciation, assuming that value of your real estate property rises while you have ownership of the property. Whilst renting a property, wouldn’t it be nice to receive a positive cash flow? That means that the rents received monthly are more than sufficient to cover all mortgages, property taxes, plus many other expenses! And the best part is that one can still be left with some profit.
Do note that while you pay down your mortgage which comes from the tenant, you will steadily earn more equity in the property. This will help you to borrow against the equity and thereby fund many investments and if needed, you can sell the property in hand and finally cash out.
Real estate investment comes with a few tax benefits too. One key role of any Government is to assist in ensuring access to housing for citizens, and thus tax laws indirectly promote real estate development plus investing. While real estate investing does need a substantial amount of money, with creativity you can do deals that don’t need tying up hordes of money and yet provide passive income. You can also work as a dealmaker of real estate and put deals together for others to execute.
Learn More about Real Estate Investment
For example, you can formulate a proposal for a brand new shopping complex, get potential tenants, and then sell off that deal to any real estate developer. End result: You receive a slice of the total revenue. This is a wise way to earn money. Many business ventures as well as organizations hold enormous wealth, all in the form of real estate. Take for example, McDonald’s- They have not only made loads via their tempting offerings but own several street corners all across the world. The Catholic Church is another supreme land owner.
Over time, your property will escalate in value leading to a proportional raise in equity enabling you to own more property against the equity!
However, this is a plan that shows positive results only over a span of time and not overnight. So, careful investment and thorough deliberation is almost mandatory so as to stay away from incurring loss instead of profit. There is no denying that this mode of passive income generation forms a decent route for many, especially those with patience. Who says it’s only ideal for retired people? No, this money can help you immensely even while you are earning. Make wise decisions and receive real money at regular intervals.
Global Realty Price Rise
The recent Global House Price Index study by Knight Frank brought to the fore some startling results related to the price rise of real estate across the world. While certain countries recorded high price rise, many countries witnessed a fall in the prices.
Knight Frank LLP, an international residential and commercial property consultancy based in London, together with its associate Newmark Knight Frank of New York, are one of the topmost real estate consultants in the world. The Knight Frank Global House Price Index measures the growth or decline of residential real estate properties in 53 countries across the world and is a much respected study worldwide.
According to the latest report, 58 percent of countries that were monitored by the Price Index saw a decline in the prices of residential units. While South American countries have recorded good growth in residential real estate prices, Europe seems to be in trouble with regard to the state of housing prices in its many countries.
Brazil has emerged as a clear winner with the top place in the Price Index chart with a whopping 23 percent rise in its realty prices. The economic growth of Brazil can be termed as excellent and has had the residential real estate market grow accordingly.
Estonia comes in second position at 13.9 percent while India comes in a close third with 12 percent. Housing prices in India, however, have declined by 0.9 percent in comparison to the previous quarter.
Austria, Germany, Colombia, Turkey, Russia, Iceland and Canada fill in the spots from fourth position to tenth position with a price rise index ranging from 11 percent to 6.8 percent. China on the other hand recorded a decline of 2 percent while Ireland ranked last in the index with decline of 16 percent. While some markets in the world saw favorable conditions for growth, residential markets in countries such as China bore the consequences of economic and banking conditions. The residential real estate market of China suffered due to new lending restrictions imposed on financial institutions, the subsequent difficulties in obtaining bank finance for purchasers, new taxes and laws against multiple properties.
The report noted that the Global House Price Index has recorded its lowest annual performance index since the recession in 2009. It has recorded a growth of only 0.9 percent in the year ending March 2012. Factors such as the uncertainty in countries in Europe, and the Asian governments stand to discourage speculative investments could be the cause of the dip in residential markets in countries of Europe and the Asian sub-continent respectively.
The Knight Frank Global House Price Index is compiled with the help of data provided by the governmental offices of the countries in question as well as central bank data wherever applicable. The Global House Price Index study is published worldwide and has been instrumental in providing strategic advice and property forecasts to several government agencies, real estate developers, banks and other financial institutions and international brands and corporate companies.