2 Investment Myths Busted

You can purchase small properties one at a time and just what you can manage.

Wholesale Real Estate - Fresno CA: There are lots of myths surrounding any method of money making no matter where you look. But myths are just that. They are not necessarily true and serve to discourage those who would otherwise be perfectly happy trying.

The first myth that needs busting is the idea that you are too old to invest in real estate. That couldn’t be further from the truth. There is no maximum age to invest and collect income or profit. Who couldn’t use a little extra cash? Especially those on a fixed income could do quite well and make up for a good supplemental income on top of their pension or social security.

The idea is actually a good one for those that are retired. You are the perfect landlord. You can be available during business hours to take care of paperwork and county filings at the courthouse. You would be available to handle your renters’ problems as they arise. If you have to go over and see about a leaking toilet at 9 pm you don’t have to worry about making it to work at 6 am.

“Your monthly income will not vary much, because interest rates and the housing market are not necessarily relevant to rentals.”

You can purchase small properties one at a time and just what you can manage. The rent will cover your mortgage payments and you should collect a small additional income each month. Have some in reserve for those months when you may have a vacancy or a repair to make, but in general you are not too old.

Myth number 2 is about the real estate bubble. ‘What if I buy a property and the bubble bursts or the interest rates go up, go down, go sideways, etc.?’ If you hold property, you will rent it out most likely. Your monthly income will not vary much, because interest rates and the housing market are not necessarily relevant to rentals. No matter what the real estate market is doing, rental rates should stay very much the same. They may vary a bit here and there, but for the most part rentals are a great business.

With the foreclosure situation in full swing and more foreclosures expected to happen in the next several years, there will be more demand for rental units. Those losing their homes need to live in houses and there will be more call for rentals, rather than less demand.

Related Articles:

Tagged with: •

Filed under: Articles

Like this post? Subscribe to my RSS feed and get loads more!