investing


 

Unlike other investments, real estate is dramatically affected by the condition of the immediate area where the property is located, hence the well-known real-estate maxim, “location, location, location.” With the exception of a national or global recession, real estate values are affected primarily by local factors such as the availability of jobs, crime rates, school quality and property taxes. Buying real estate directly results in profits (or losses) through two avenues: revenue from rent and appreciation of the real estate’s value. Rental money comes from land already developed into residential or commercial real estate. Appreciation can come from either developing raw land or from the appreciation of the area around the land you own, for instance the appreciation of real estate