Real Estate Investment

Real Estate Investment

Real Estate Investment

Atlanta title pawn may purchase residential real estate addressed a primary need: shelter. Investors may also choose to invest in real estate to generate current income, capital appreciation, or a combination of these objectives. There are several ways to invest in real estate, both direct and indirect.

Direct Investment in Real Estate

Methods of direct investment in real estate include the purchase of raw land, residential rental property, and commercial property.

Purchase of Raw Land:

One investment option is the purchase of raw, undeveloped land. Raw land can generate both current income and price appreciation. For Example, an investor may purchase land and use the land to grow crops for sale, or rent the land to someone else to farm. Raw land also has the potential for price appreciation. For Example, an investor may purchase wooded land close to a popular real estate development in the suburbs. As the suburb grows, the real estate may become a prime location for additional home construction. As with other types of real estate purchases, the location of the land is an important consideration.

There are three important considerations when purchasing raw land: zoning restrictions, wetlands, and pollution exposures.

-Zoning restrictions are local limitations placed upon the usage of property for a certain purpose.

-Wetlands are swamps, marshes, bogs, and other areas that are subject to saturation by water. Federal law and some state laws restrict the usage of property that has been designated wetlands.

-Investors should also consider pollution exposures when purchasing land. Land should be inspected before purchase to check for hazardous materials.

Purchase of Land with Structures:

A second real estate investment alternative is the purchase of land with structures. The structure could be a home, duplex, apartment building, or a structure designed for commercial purposes. The structure can be used to generate rental income and may also appreciate in value. Purchasing residential or commercial rental property creates a number of responsibilities for the purchaser. The owner is responsible for repairs and maintenance, property taxes, finding tenants, and insurance. In addition to the risk of physical damage to the property, the owner has a liability exposure.

Indirect Investment in Real Estate

You can invest indirectly in real estate through real estate investment trusts (REITs), mortgage-backed securities, collateralized mortgage obligations (CMOs), real estate mutual funds, and real estate-related companies.

Real Estate Investment Trust (REITs). The first indirect investment method we will consider is real estate investment trusts at Atlanta title pawn.

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Inadequate savings by younger workers

Inadequate savings by younger workers

Inadequate savings by younger workers

The majority of younger workers is saving an inadequate amount for retirement and could find their selves needing products from title pawn Atlanta. Several studies point out the magnitude of the problem. One study of the baby boom generation (those born between 1946 and 1964) by Merrill Lynch showed that the baby boomers most nearly triple their rate of save the prospect of delaying retirement , accepting a lower standard of living after retirement, or foregoing retirement altogether. Another study sponsored by the Oppenheimer Management Corporation showed that, as things now stand, most Americans will have only one third to one half of the annual income needed to retire comfortably. Finally, a study by the Public Agenda Foundation, a nonprofit organization, concluded that almost nothing for retirement.

Thus, the various studies show that undeserving for retirement is a serious problem.

Barriers to saving for retirement

The Public Agenda Foundation also identified several important barriers to saving for retirement. They are summarized as follows:

-Retirement is not a high-priority goal for most people. Most people are overwhelmed by work, by payment of bills, and by health-care costs. Thirty-six percent stated they never think or seldom think about retirement planning.

-Many workers do not earn enough to save for retirement. About one third believe they cannot save more for retirement because they lack the money to do so.

-Many Americans lack knowledge about retirement planning. Seven in ten Americans did not know how much money they would need for retirement. Thirty-seven percent substantially underestimated the amount of money needed for retirement.

-Many Americans resist cutting back to save for retirement. Some Americans struggle to make ends meet and have great difficulty savings for retirement. However, many middle-class Americans strongly resist cutting back on luxuries or non-essentials to save for retirement. About two thirds of the respondents (68 percent) indicated they could save more for retirement by eating out less often, but only 18 percent of this group stated they are likely to do so.

-The public takes a conservative approach to retirement. Many persons invest too conservatively for retirement and are frightened by the stock market and its volatility.

-Personality is also important in retirement planning. The report identified four types of personalities:

  • Planners (about 21 percent of Americans) are in control of their financial affairs.
  • Struggles (about 25 percent of Americans) have a great difficulty in making ends meet.
  • Deniers (about 19 percent of Americans) typically refuse to deal with retirement.
  • Impulsive (about 15 percent of Americans) seek immediate gratification by spending today and forgetting about retirement could end up in need of title pawn Atlanta.