There is one investment option that won't leave you shuddering at the thought of a risky stock market and economic crisis: residential real estate. The forecast for real estate profits continues to be rosy, particularly in promising, 'up-and-coming' locations like Guam. It's a solid, stable venue for your money through both good and bad times. If you're a real estate newbie, get in touch with the basics of this potentially profitable investment.

1. Why Real Estate?

   Those searching for a secure investment may find that real estate is an avenue that continues to be lucrative even during a down market. If you already own a stock-heavy retirement portfolio, holding on to a home as an investment will help you diversify your investments and balance out.

   

2. Rent vs. Sell

   There are numerous benefits to becoming a landlord. Renting your home lets you enjoy capital gains, and it covers at least 80% of fixed costs, including mortgage payments, insurance, and taxes.

   Although income from renting a home is taxable, there are deductions homeowners can take against rental income. Landlords can take away insurance, property taxes, mortgage interest, utilities unpaid by the tenant, and others.

   If you're searching for a sizable amount of short-term profit, real estate comes through for you as well. When you purchase property that's cheap, a few renovations will increase the home's equity, and you can sell the house at a much higher value.

   

3. Searching For The Right Property

   In theory, the price you should be willing to pay for the property should be, at most, seven times your gross annual income. If you're a little short, there are many financing options that'll let you buy a home with very little money. Since real estate investments can be quite hefty, ensure you find the right property and location for you. Researching alone can become a full-time job.

   Enlist the help of real estate experts, like guamrentals.com, who are experienced in the hunt for the perfect property. They are most familiar with the area and can provide advice throughout your home buying process, from start to finish. You'll surprise yourself at how quick you're able to remove the sign out front, and enjoy your new home under a glistening canopy of stars.