Building wealth through real estate - Wilmington NC Homes

June 4, 2012

Now's a good time to start building wealth through real estate.

?If you've been thinking about buying a home or rental property, experts at bankrate.com say low prices combined with low interest rates make this a good time to do it. As one real-estate specialist puts it, "When money is cheap to borrow and houses are cheap to buy, it's absolutely the best time to invest."

?While the timing is right, these tips below can help you take advantage of what might be the opportunity of a lifetime, say Bankrate advisors.

? * Find a rental property in your area. Your BlueCoast Real Estate agent can help identify good properties and will work with you and share investment knowledge. If you have the time and inclination, you can search foreclosure listings, read the newspaper ads, walk or drive through neighborhoods, and seek recommendations and do a lot of reading.

??* Look for the right location. The right location is one based on your criteria and you doing your homework. The Properties in highly populated areas can draw from a larger pool of potential renters. Renters are generally looking for properties with multiple bedrooms and bathrooms that are located in low crime areas. They want to feel safe and send their kids to good schools. There are many tools on the web to help.

? * At MSN Money, they ask, "Why buy a rental?" Their answer: "To get richer." In today's market, you may be able to buy a property for $35,000 less than its actual value. Over time, you will realize most or all of that value.

? * In the meantime, you can generate a reliable cash flow from the property.

??* Because of depreciation and other deductions, you may not pay federal or state tax on the income.

? * Some prospective investors worry about the work involved in owning a rental house or duplex. You won't have to worry about it if you hire a property manager to do the job for you. You'll still have income. If you buy a three-bedroom, two-bath rental home for example: It rents for $1,200 a month. The mortgage payment, taxes and insurance is $980, and the property manager gets $120 a month. The investor still has income of $100 a month and in this case, if the home was bought for less than market value, you could actually have equity right from the start. When investing in property, that is the goal, equity and cash flow. Do your homework and contact a BlueCoast Agent today.

Written By:? David Dougherty

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