Investments: The downturn in Real Estate

Source:http://investmentsandsavings.info/1839/real-estate-investment-experience-problems-and-their-solutions/

Summary

In this article, it talks about what to look for when buying homes in general , in order to benefit the owner to a good investment. When buying a home it's neccessary to look and keep in mind of it's condition , price, and it's apprecition for the upcoming years, if you wanted to sell it in the future . The other things to consider is it's mortgage rates, seeing how much money you would borrow to buy a home, and in return paying the banks in a fixed interest rate along with money borrowed diveded in a monthly timeframe until it's paid off.

Connection

In this chapter, it defines investments as business or government puchases of machines and equipment, new-housing construction, and any change in buisness inventiories. Investment Spendings are affected by some variables such as, interest rate, change in technology, Government policy and taxes, expectations, etc. Interest rate determines the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower.A change in technology effects spending habits and investments of buisnesses particulary because of new equipment being introduced. Government policy can include restrictions on apartment constructions, and enforcing new taxes such as the excise tax to affect demand of products and buisness investments.

Reflection

In my opinion there is way more better way to benefit investments then retail selling, since the value or appreciation of a house depends on it's age and it's condition. The better the house , the better the buy. Stocks can be considered good investments , since the advantages of investing in stocks is that you own your own business with literally do nothing, you have flexible holding position, which you can liquidate it anytime you want, no string attach, and unlike other business, you need a team. but here, you can work yourself, and from home. Investing in a company , that has a high perfomance rate is sured to give better dividends in a month time-frame.