What is a Good Real Estate Investment?

February 6, 2012 by themathercompany
Filed under Blog, Buyers, Columbia Real Estate, General Real Estate Information, Local Real Estate Information, South Carolina Real Estate

Leave a Comment

A “good real estate investment” can mean different things to different people. For this article, the definition of a good real estate investment is:

A real estate ownership interest, whether a personal residence or rental property, that increases one’s net wealth by a fair rate of return on their invested cash equity; for the corresponding amount of risk they are taking by owning a relatively high risk asset.

What that means is that if you are going to put your invested cash equity into real estate, your net worth should improve by a greater amount than if you invested in a similarly risky asset. Read more

Tags: appreciation, asset, buildings, buyer, buying, Columbia, costs, down payment, equity, expenses, finance, housing, housing market, income, investing, investment, investor, net worth, ownership, owning, personal finance, property, property management, purchasing, real estate, rehab, renovation, rental, rental property, renting, residence, returns, risks, SC, South Carolina, value, wealth