Friday, January 11, 2008

Long Term Real Estate Returns

Article By Mika Hamilton
“It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate.”-Donald Trump Real estate returns are a great investment option for anyone who is looking for long term growth of their capital. Today, in the United States, real estate investing is booming with a great rate of return and extremely low risk. Land always appreciates in value and that is why many investors are pulling their money out of the stock market and placing into real estate, which almost guarantees a nice profit on a regular basis.

Land over the last year has increased by over 30% and about 130% since the early 1990s. Many people who are looking for investment options which will offer long term growth believe that mutual funds, investment trusts, and traditional stocks are their only options.

Real estate is probably the best option of all. Not only is it profitable but it a great deal of fun and very exciting. Unlike other investments real estate investing can be hands on, and with each new investments there are new things to see, do, and consider.

Real estate is the perfect investment for a conservative or new investor because it is very low risk. Real estate investing used to be an investment that only the rich could afford. Today, small or big investors have the ability to take advantage of this growth and profitability market.
Land has a great deal of potential because it adheres to the supply and demand theory of capital growth. As the amount of land decreases as supplies drop, the price of land increase as the demand for land grows stronger. People and companies will always need land to build on, and land is also renewable.

This means that land never wears out and has to repurchased. As the population in America increases, and people continue to immigrate here the need for land for residential housing will continual to rise. In addition, people are divorcing or choosing to stay single at a staggering rate.

This means that instead of one house, for a couple, there will need to be two houses. There is a desperate need for affordable housing for middle class families. Many urban areas are being revitalized to make room for young businesses people and lofts.

If you are looking for a solid investment which is easy to understand, you may want to consider real estate investing. The rules are simple, buy low let the land appreciate, and then sell high. There are no complicated business strategies, no reading of balance sheets, or complicate risk benefit formulas. Real estate investing is low risk, high profit, and anyone buy a piece of property at their price level.

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