Real Estate Investing Realistically

I ran across a good article from CNNMoney on Myths about Condo Investing. This article contains some excellent advice right in line with the ideas I am trying to get across on this web site.

The myths they mention are:

Get in early and you’ll be guaranteed a profit

Buying a unit in the preconstruction phase does have some real problems. It ties up your money while the unit is being built and you have to hope that the condo market does not start to slide while the unit is being constructed.

Creative mortgages lower your payments and guarantee positive cash flow.

Creative mortgages can leave you at risk. If you are paying interest only on your loan, and the market values go down, you could owe more on your property than it is worth.

You should buy in your backyard, where you know the landscape.

The place you live could not be the best market. If the price-to-rent ratios in you market are very high, it could be almost impossible to find a unit that has positive cash flow.

This entry was posted on Tuesday, November 8th, 2005 at 12:30 pm and is filed under Real Estate Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.