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Making Profits in Property Investing |
Written by Melanie C
Tuesday, 13 May 2008
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There are four ways in which to make money with property investments. The first is to buy and sell at a profit. This is called passive appreciation because you are relying on the market to increase, for your profits. The second is active appreciation because you do something to increase the value of the property - namely, renovations. Then your profit is reduced by the amount of money you spend on the renovations. The third way to make a profit is to buy and rent the property out. While it creates positive cash flow, there could be problems. If the property does not rent, then it will be lying idle and producing no income... but you will still have to pay the mortgage, insurance and upkeep. Depending on your properties to generate positive cash flow may not be as good as investing in stocks and shares. The fourth way to make money with property investments is through tax benefits. When you have a property portfolio you can take advantage of tax loopholes to increase your savings. An astute investor should try and take advantage of all four types, but those who are the most successful usually go for capital growth above all. They buy solid properties in high growth areas and keep them, taking advantage of the market cycles to buy at fair market value or below. Article Source: http://www.ArticleBlast.com |
About The Author:
Looking into apartments perth? Visit the Saville Australia website (http://www.savilleaustralia.com.au) for more information on property investment.
Looking into apartments perth? Visit the Saville Australia website (http://www.savilleaustralia.com.au) for more information on property investment.
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