Thank you for reading thecheers.org's Money articles.

Buying Real Estate? Watch out for pitfalls

 article about Buying Real Estate? Watch out for pitfalls
2014-02-07 03:51:00

Land is widely thought to be the safest and if not the only proper investment. But in the contemporary real estate market is it really so or has it become a conventional myth? Current facts and figures from the world of immobility bear frequent records of subprime loans, defaults, foreclosure and predatory lending thus eliciting the idea that making a fortune via real estate assets has become an unfeasible task. Achieving beneficial real estate transactions is only possible if the venture is paired up with discipline and conscientiousness. On top of that, awareness of some real estate traps and pitfalls might play a significant role for the successful outcome.

The first amateur mistake is getting emotional with the property you consider purchasing. By explicitly showing one's genuine fondness of a real estate piece one can only secure themselves escalated price for the property. And, to look at the same matter from a different angle, someone's personal attachment is always subjective and does not necessarily permeate among some potential buyers of yours. So the resale value shouldn't comprise one's ‘delight' element. A prosperous trader never thinks in non-financial terms, so it makes much more sense to concede to a slightly less desirable accommodation at a far more agreeable price. The bottom line is when it comes to property there should be no emotions involved as it is just about business. It's common for regular people to consider a house as a home, but not for investors who see real estate as a financial instrument which can help attribute to one's fortune.

Besides the property itself, its surroundings are what play a crucial part in a beneficial sale, and sadly they are often overlooked. The house may be perfect and large but located in the wrong neighborhood it's just a piece of better-looking trash in the garbage bin in terms of real estate market. The environment is one of the important aspects determining market value and a modest home in better location is appreciated much more than a mansion in a bad one.

Speaking of real estate pricing, is it really the very same amount of money which is being paid for a piece? Well, it is if the buyer is one of the lucky few who are able to enter payment all at once. The word ‘few' cannot be emphasized enough and most of the purchasers are bound to take the ‘advantage' of mortgage thus no immobility transaction can be compared to buying an everyday item. Not a certain sum of money but an annuity is traded for a piece of real estate and this annuity is subject to many variables. A beneficial interest rate is much more significant that a favorable house price and this is easy to comprehend due to simple calculations – a $100,000 house can end up costing you over $190,000 among principal, interest and insurance - to say nothing of taxes. So, taking out a more advantageous mortgage loan could possibly either save up one's budget or put the buyer into a considerably larger house. You can look through some free ads to find the most up-to-date offers.




have your say


more in Money
How much money can you make trading forex?
Buying Real Estate? Watch out for pitfalls

I have seen too many people asking that question - how much can I earn by trading currencies, by trading forex? And as many of you might have assumed, there is no definitive answer, but let us look into it.

Different Types of Online Casino Bonus Features
Buying Real Estate? Watch out for pitfalls

The online casino industry is growing rapidly, and you can find many online casinos. This increases competition among providers. Therefore, they have to find different ways to attract and retain casino players. One of the best strategies followed by gambling sites are the bonuses they offer.

How to Attract Luck in Gambling
Buying Real Estate? Watch out for pitfalls

Luck or Something Else? Although all players know the fact that gambling odds are pretty much pre-determined and precisely calculated for each and every online casino game, the players from all aroun...

How to get involved with property investment in the UK
Buying Real Estate? Watch out for pitfalls

The property market is experiencing huge growth, with a number of major UK cities making names for themselves as hotspots for buy to let investment. If you've been thinking about investing in a property, now is a great time with lots of exciting opportunities and potential.

Trading forex? Here's one of the best daytrading strategies
Buying Real Estate? Watch out for pitfalls

If you're just learning to trade forex and haven not figured out what strategy or strategies to use for your day trading, I have been testing a few and so far this one seems to be the trading strategy with most potential. At least for now.

thecheers.org

Welcome to TheCheers! We've been around for a long time now, since 2004, publishing articles by people from all over the world. Roughly 300 people from 30 different countries have written for us over the years. Should you want to become a volunteer contributor, be sure to contact us!

Educational resources
Entertainment Blogs
get in touch

You can contact us via The Cheers Facebook page or The Cheers NEW Twitter account.