Real Estate Investment

christopher5 · February 22nd, 2009, 08:51 AM

Is Real Estate Investment a long-term investment strategy?

iOperate · February 22nd, 2009, 09:18 AM

Quote:

Originally Posted by christopher5

Is Real Estate Investment a long-term investment strategy?

It depends on the investment strategy.

grace · February 24th, 2009, 12:06 AM

Absolutely right It depends on the investment strategy. long term investing provides a viable option with a potential for high profit. Long term investment requires much more effort and commitment to maintenance than a short term real estate investment, where one just does enough rehabilitation work to turn a profit quickly. Long term investors purchase a property in an area where the long term appreciation rate appears favorable and rent the property to tenants, acting as landlord and taking care of all the maintenance that the property requires, while profiting from the monthly rent checks while waiting for the property value to rise enough to sell it for profit. Long term investments also carry several risks that the smart investor tries to minimize in the beginning stages of the investment. Investors should prepare for a worst-case scenario, keeping enough capital devoted to the property to maintain their investment if there is a vacancy or a decline in the market value.

ethan83 · February 28th, 2009, 02:24 AM

Hi christopher,

Yes, real estate investment is one of the long-term investment strategies, but constitutes powerful planning for the future. With some of the experts advising on “buy and hold” and the tax strategists pointing us towards strategies that involve long term and short term plans. It is best to focus on the investment on your choice and then organize your tax strategies. Just visit: Home | Baltimore REIA for more on tax strategies.

judithscott · June 8th, 2009, 02:24 AM

If you are looking for a long term investment, Real Estate is the best one because it returns you a guaranteed income. Real Estate is the most stable investment.

PM781 · March 19th, 2010, 08:05 PM

Apartment building investment in Ontario is not a great investment-not that Ontario is a bad place to invest. The problem is in the tenant Act-the act as the name implied favors the tenants and evictions are rare and the yearly rental increases fall within a 2% increase each year. With individual units running $95-100K and cap rates hovering around 6% cash flow is difficult at best of times. Expenses are around 50% of revenue. Today’s investors seek out cash flow rather then building appreciation as buildings today will appreciate around the 2-4% annually. If I can find a building with a true CAP rate of 7.5-8% and the tenancy act is more balanced i would definitely invest in Ontario.

February 22nd, 2009, 08:51 AM	#1
christopher5 Junior Member Join Date: Feb 2009 Posts: 2	Real Estate Investment Is Real Estate Investment a long-term investment strategy?

February 28th, 2009, 02:24 AM	#4
ethan83 Junior Member Join Date: Feb 2009 Posts: 1	Real Estate Investment Hi christopher, Yes, real estate investment is one of the long-term investment strategies, but constitutes powerful planning for the future. With some of the experts advising on “buy and hold” and the tax strategists pointing us towards strategies that involve long term and short term plans. It is best to focus on the investment on your choice and then organize your tax strategies. Just visit: Home \| Baltimore REIA for more on tax strategies.

February 24th, 2009, 12:06 AM	#3
grace Junior Member Join Date: Feb 2009 Location: Canada Gender: Female Posts: 23	Absolutely right It depends on the investment strategy. long term investing provides a viable option with a potential for high profit. Long term investment requires much more effort and commitment to maintenance than a short term real estate investment, where one just does enough rehabilitation work to turn a profit quickly. Long term investors purchase a property in an area where the long term appreciation rate appears favorable and rent the property to tenants, acting as landlord and taking care of all the maintenance that the property requires, while profiting from the monthly rent checks while waiting for the property value to rise enough to sell it for profit. Long term investments also carry several risks that the smart investor tries to minimize in the beginning stages of the investment. Investors should prepare for a worst-case scenario, keeping enough capital devoted to the property to maintain their investment if there is a vacancy or a decline in the market value.

June 8th, 2009, 02:24 AM	#5
judithscott Junior Member Join Date: Jun 2009 Posts: 15	If you are looking for a long term investment, Real Estate is the best one because it returns you a guaranteed income. Real Estate is the most stable investment.

March 19th, 2010, 08:05 PM	#6
PM781 Junior Member Join Date: Mar 2010 Posts: 1	Apartment building investment in Ontario is not a great investment-not that Ontario is a bad place to invest. The problem is in the tenant Act-the act as the name implied favors the tenants and evictions are rare and the yearly rental increases fall within a 2% increase each year. With individual units running $95-100K and cap rates hovering around 6% cash flow is difficult at best of times. Expenses are around 50% of revenue. Today’s investors seek out cash flow rather then building appreciation as buildings today will appreciate around the 2-4% annually. If I can find a building with a true CAP rate of 7.5-8% and the tenancy act is more balanced i would definitely invest in Ontario.

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