Buying a house as an investment?
By TeamCholent
@TeamCholent (2832)
United States
December 19, 2010 10:09pm CST
I am curious to discuss the concept of buying a house/apartment or even a lot as an investment. Have any of you done such a thing? I am looking at buying an apartment as an investment as its really good value for money and mortgage is so low my rent income would cover that plus any taxes. I read recently that there is a growing number of Australians buying property in the US market due to the strength of their currency and value for money. They can earn more than triple the return of investment within 10 years compared to back home. Of course they account for such a tiny percentage in the purchase market. I am looking to purchase soon as 2011 is meant to see an increase in the amount of renters and slightly easier to find rent income.
So what are your thoughts on buying a property for investment purposes and whats your experience with it, if any?
5 people like this
14 responses
@zandi458 (28102)
• Malaysia
20 Dec 10
Real estate investment is by far the most lucrative investment as people are always looking for roofs over their heads. Since not everyone can afford to buy houses, they have no choice but to rent. It is the buyers market now as they are so many houses up in the market with the banks offering low interest rates due to the bad world economic situation. Take advantage of that and you'll never regret your decision to invest in property market. You will never go wrong when investing in properties as properties are assets that won't depreciate in value.
1 person likes this
@TeamCholent (2832)
• United States
22 Dec 10
My only fear is the area turns into a bad neighborhood and the value declines but I would still get rent income so I guess that doesn't matter as much as it would be pay off in full quickly.
@20kg82 (11)
• Australia
20 Dec 10
I would say go for it if you can afford it. My husband and I have recently built a house and this week have just bought another block of land to build an investment house on. Our way of thinking is there will always be people that are or have to rent for one reason or another so why not let them pay off your mortage for you
1 person likes this
@TeamCholent (2832)
• United States
20 Dec 10
I agree with you, they need places to rent and you need some income forever. Where was this new plot of land if I may ask?
@shia88 (4571)
• Malaysia
20 Dec 10
Hi,
From my point of view, buying a house as an investment is
a good option,provided you have extra cash in hand.
As property tend to hike up the price most of the time, having
more houses in hand may generate future income for you.
Of course, after buying the house, you still can rent it out to
someone else and use the rental to pay for the house loan.
I do think that the best investment is having property in hand.
1 person likes this
@TeamCholent (2832)
• United States
20 Dec 10
Of course only if one has some cash on hand as a down payment and can get a good loan. Paying off the mortgage on a $25 000 loan is super easy if you have any job.
@TeamCholent (2832)
• United States
20 Dec 10
I agree with you that it is but the costs in my area are a bit insane so looking in Vegas, just need to see if I can assure some rent income. What does a house cost in your area as the Pacific islands are beautiful!
@infatuatedbby (94921)
• United States
20 Dec 10
I have never bought a house in general let alone an investment. I am still young however I would love to invest in a house, apartment, condo or something as an investment in the future.
Sorry, I don't know much input :(
1 person likes this
@TeamCholent (2832)
• United States
20 Dec 10
One is never too young to start investing. My husband and I are also young but he has a degree in Economics and we both been investing since we were little kids. College kids have a unique chance at investing early on in their lives. Best of luck.
@AJsMom (157)
• Philippines
20 Dec 10
For those who have money to invest, now is the best time to put your money into it. Investing in real estate is a win win situation because, as time goes by, the value of it appreciates. You can have it leased to generate another income, just make sure that the house will be properly maintained for it to last long, giving you better chance of profiting for an extended period of time. In time I will have to buy me at least a lot only as an investment. I will be giving it away to my kids when they would want to build a house of their own.
1 person likes this
@TeamCholent (2832)
• United States
20 Dec 10
I agree, if one fails to maintain everything the property not only costs a lot more it also lasts far less and becomes more of a useless investment and not something worthwhile. We are thinking of starting with 1 apartment and slowly growing to a few more as we go along. Have a great day!
@youless (112164)
• Guangzhou, China
20 Dec 10
Although the house price has increased quite a lot here. But I still think that it will give us a big pressure if I invest a house. Because I may not consider to pay for all the payment for the house. If we have a loan from the bank, then every month we have to return some money. So this will be a big pressure if there are any accidents happen. And here you can own a house for 70 years only. So I don't think it is really worth buying a house. Who knows what will happen tomorrow?
I love China
@TeamCholent (2832)
• United States
22 Dec 10
Thats why one needs to have capital to ensure a lower mortgage rate and also a steady job and rent income. All those help to ensure you can pay off the house with more ease.
@moonchild1au (6240)
• Australia
20 Dec 10
Personally, I think this is a great idea...I personally wouldn't buy an investment property myself until I bought myself a house but this is just me...I think as long as you can work it right & maybe even negative gear the investment property, it would be a great thing to do...The property market anywhere in the world is likely to improve over the next 10 years after the world economic crisis...good luck in finding a great investment property.
@TeamCholent (2832)
• United States
20 Dec 10
Thanks so much for your encouragement and word of support. I have selected a few potential locations so now I have to go down and visit them.
@dawnald (85135)
• Shingle Springs, California
29 Dec 10
Our one and only experience was buying a foreclosure house with the intention of fixing it up and flipping it. Sadly, the market at the time was not cooperating with us. We thought it had hit bottom, and it hadn't quite. We ended up renting and then selling it to my brother-in-law for a loss. He ended up making a bit of a profit on it...
@dawnald (85135)
• Shingle Springs, California
29 Dec 10
Won't bother me if they go lower. I bought low and sold high in LA, so I still have lots of equity, but some people will get hurt. :-(
@TeamCholent (2832)
• United States
29 Dec 10
At least someone got the benefit. This would be long term for sure and I feel the markets are still going to go lower.
1 person likes this
@pratiksanghvi (1281)
• India
20 Dec 10
Investing in Infrastructure and Real Estates will surely turn up into Profits now a days. Now a days many new Buildings and new township projects are coming up and Lands are very less available. So it is obvious that the Rates of the Properties will surely go up.
My advice is that you should surely invest your money in the House and when the property rates go up you can sell it. But before buying the house just research about the House. If the location of the house is in a better area then for sure the rates will go up pretty fast.
I think your Investment will give you a lot of Profit.You should do it. Good Luck.
My advice is that you should surely invest your money in the House and when the property rates go up you can sell it. But before buying the house just research about the House. If the location of the house is in a better area then for sure the rates will go up pretty fast.
I think your Investment will give you a lot of Profit.You should do it. Good Luck.@pratiksanghvi (1281)
• India
22 Dec 10
If we want to do something we can surely manage it. So I think that you will be able to manage this too.
Good Luck.
My father is also thinking of buying a Good property at a very good location but we don’t have the Investments. So my dad is now thinking of getting a partner with him for the Property. The partner will be my Dad’s Friend. So my dad will have to pay less Funds for the house. I suggest that you do the same thing and get a partner in your Investments.
A partner surely divides the Profit but the better part i that we have to Invest less and if there is any loss, then the loss becomes less too.
My father is also thinking of buying a Good property at a very good location but we don’t have the Investments. So my dad is now thinking of getting a partner with him for the Property. The partner will be my Dad’s Friend. So my dad will have to pay less Funds for the house. I suggest that you do the same thing and get a partner in your Investments.
A partner surely divides the Profit but the better part i that we have to Invest less and if there is any loss, then the loss becomes less too.
@TeamCholent (2832)
• United States
22 Dec 10
Thanks and I am busy as we speak researching the potential fees and rent income so we will see how it goes soon.
1 person likes this
@clouds0327 (1389)
• Philippines
20 Dec 10
Yes I guess it is. I would like to buy in the future too, If I have a lot of money I guess... Then buying an apartment and have it leased will be a good business too... 
@TeamCholent (2832)
• United States
21 Dec 10
One doesn't need a lot but one needs enough to make sure they can pay if off and quickly.
@snowhybiscuis (1882)
• Philippines
22 Dec 10
I don't have much experience when it comes to investments. But I learned from the books of Kiyosaki that investing on properties is one way to get rich. Land cost increases over time. And you can immediately get the return of investment if you have it rented. Good luck to your endeavor.
@Sanitary (3968)
• Singapore
20 Dec 10
Property investment is a common sight in singapore and that's why our government is stepping in to cool the market before prices hit sky high. Now private properties in singapore are commanding as high as 10million on a private land, while condominium are asking for at least 1 million. As for normal apartments and flats, the cheapest one can get is about $200+k or maybe more. Though our property prices here might not be the cheapest, but it's good investment value too.
@TeamCholent (2832)
• United States
21 Dec 10
Thats also a bit steep in price. Where I live a 1 bedroom apartment goes for roughly $320 000 and a house for $1 so the value lies in the houses for sure. One thing is I would invest in cheaper markets. Thanks for your input!
1 person likes this
@mhypie03 (683)
• Philippines
20 Dec 10
My mom owns 2 apartment for rent here in the Philippines. But they are located in different provinces. The first one she built has a continuous income generation because it's near factories and a mall. While the other one, it's been a year or so that no one has been renting ever since being flooded on our other residential home last year. She transferred most our furnitures and appliances there. Now, she's ready to let people rent it again, not one has even inquired yet. Success of businesses depends on where it has been established. It's important you conduct your own research by observing the area personally. Of course it should be accessible and if possible near commercial areas.
@TeamCholent (2832)
• United States
22 Dec 10
Thats a given, I am looking at close to the College as you can always try and get rent income from the college students. One needs to do research before hand for sure. Wish you guys a turn for the better soon and finding some renters.
