BUS 215 WEEK 5 DISCUSSION 1, REAL ESTATE INVESTMENTS

BUS 215 WEEK 5 DISCUSSION 1, REAL ESTATE INVESTMENTS   BUS 215 WEEK 5 DISCUSSION 1, REAL ESTATE INVESTMENTS Despite the crash of 2008 and 2009, real estate remains a solid investment over time. Why might this be the case? What is it about realestate that makes it a good investment? What kinds of real estate investment vehicles exist, and what are the characteristics of those vehicles? How do you, or could you, use real estate in your portfolio? Your 200 word answer should focus on selecting the most relevant factors and the investment potential of various types of real estate. Respond toat least two of your classmates' postings. Real estate remains a solid investment over time because there will always be numerous types and sizes of property tobe obtained at a reasonable price. When you acquire a piece of real estate you may be paying a mortgage tha will include an interest rate, but, the equity that the property earns can bypass the money pai out in interest. The most common types of property purchases are homes, apartments or duplexes and commercial property. These properties are usually rented toproduct income tothe owners. There is also the undeveloped land that can be bought as an investment too. Undeveloped land is considered a big risk. It is considered a big risk due tothe fact that the land in no developed or set up toaccommodate anyone and this can sometimes make the land worth less than paid for it since you cannot generate income from it. My husband and I do have plans topurchase a home in the very near future since we have two small children. We feel this willbe a sound investment because our children will have a place toplay and a stable environment togrow up in. When making a real estate decision one should consider that while you are payingoff the mortgage the property is intangible due tothe fact that the bank will hold the title until themortgage is paid in full. Even though the property can generate income for you the bank still owns part of the property until you have fulfilled your obligation topay back monies borrowed tobuy the property. Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (212) Personal Finance (10th), New York: McGraw-Hill