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Tuesday, May 16, 2006

Investment property

Any property that you buy to make a profit - either from renting or selling it

Investing in real estate can be extremely profitable venture –it is considered a long-term investment and the way to make money is to have equity, which is the money that you keep after the mortgage is paid off.

The three main ways to build equity are:
(1) your down payment when you purchase
(2) paying off the loan’s principal, which may take several years since your first years’ payments go primarily towards the interest
(3) the increase in the home’s value when the property appreciates.
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