Why Invest In San Diego Real Estate? PART 3

Why Invest In San Diego Real Estate? PART 3

The next advantage of Investing in North San Diego Real Estate:

LEVERAGE- A great thing about real estate is that you can tie up a big asset with a relatively small amount of money. You can easily buy a $400,000 home with either a zero down or only 10% ($40,000) down payment. To illustrate the power of this, consider this example.

Suppose you bought $40,000 worth of gold, mutual funds, or some other investment. Let’s say that it goes up 10% for the year- not bad. Your investment is now worth $44,000. So your return is 10% of $40,000 = $4,000. Now lets suppose that you take that same $40,000 and put it as a down payment and buy a $400,000 house. Again, let’s say that it goes up 10% for the year. Your property is now worth $440,000!

Your $40,000 investment increased by $40,000. That is a 100% return on your money (not even considering the equity build-up resulting from the constantly decreasing mortgage, cash flow, or tax advantages)! If the property appreciates 20% that home would be worth $480,000, a 200% return on your investment!

"But, Real estate values went down" If you purchased below market, you can still see huge returns. For example, if you bought a home worth $400,000, but you only paid $360,000, and it went up to $440,000 after one year, that's over $80,000 in equity.

If you opted for a zero percent down loan, your investment would increase between $40,000 - $80,000, with little or no initial cost to you! This simply cannot be done with stocks, bonds, mutual funds or gold.

Get started! These conditions WILL NOT LAST! Ask yourself how many real estate booms you've missed thus far, and make a decision to be in front of the next one!

Stay tuned!

Marc

For everything you need to take advantage of the North San Diego Real Estate market and my FREE newsletter go to: http://www.MarcVonMusser.com