Wealth Basics

Real estate is different things to different people. But on a common note Real Estate (RE) is the world's greatest wealth creator. If you study RE in relation to other vehicles of wealth creation, you will notice that other vehicles while promising do not offer the same level of price support mechanism(its price does start licking the dust if a crisis unfolds in the financial market) which is vital for some one if he or she is considering wealth creation as a life objective.

To start with let's clear a few things. Am I saying that shares, derivatives, owning business, tertiary education , fixed deposits , mutual funds are not worth while.investments? Absolutely not. Am I saying that real estate is the most supportive form of wealth creation - Absolutely!
On a Joe Blog(Common MAN) note, Can he (Mr. Blog Who else? and I am not a sexist) make more money on other vehicles than Real estate - Yes . Can he lose more money on other vehicles - Oh Yes. RE is the vehicle that offers you the opportunity but does not take your Sleep at night factor away. I like real estate for the reasons as mentioned below. Have a read and see if it may work for you too.

1. Financial Security: Your investment in real estate may not climb the price ladder as fast as others but will certainly not come down the ladder as fast either.Wrong investment in RE is a rare thing. How many times have you heard that some one ( Oh Mr. Joe Blog) has lost his entire savings due to a real estate crash. Have we had any crash ?

2. KISS - Keep it simple stupid - It ain't that complicated. So no need to become a technical analyst or read buffetology.

3. Control: This is one form which offers a great amount of control over your investment. When you invest in a property , you control its maintenance, its enhancement, its renovation ..and to an extent its value. Compare that to shares where you either buy , hold and pray or sell(short selling is very funny concept), pray and buy!

4. Loan: While you may not know but for right kinds of real estate investments banks fall over each other to loan you money. (Banks are bastards, but more on this later)

5. Leverage: While property prices may not rise that sharply , your investment in property may if you use the leverage of bank loans properly.( Leverage:A tool that helps you do things you other wise cant) Driving to work while living far away is a leverage, flying on a plane is a leverage, buying a million dollar property with loan is a leverage... I hope you get the idea

6. Creativity: In RE you can be as good in moving ahead as creative your genes are. When I say creative it is about cooking ideas, dreaming up finances, smelling deals...

7. Depreciation: The ability to depreciate anything apart from land (which mostly never depreciates) for accounting purposes.

8. Freedom: while real estate is said to be all about Location location and .........(guess what the third word is ) your investments do not have to be where you live. They can actually be located far from it.

Real estate is a universe in its own right . The write up is just a start to the roller coaster ride that might end up sorting your life for ever.. so don't go any where. Keep reading

Please note that this blog contains ideas, suggestions and directives that may or may not hold good in the eyes of the legal eagles so please consult a a lawyer to make sure you land up in the right real estate after following the guidelines and insights.