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Real Estate Phrases
Real Estate Phrases
Real Estate Phrases
Ebook68 pages46 minutes

Real Estate Phrases

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Real Estate Phrases - Terms, Terminology, Phrases & Meanings
is the ultimate compendium of real estate phrases, terminology
and terms. It is a real estate glossary that encompasses real
estate phrases, real estate abbreviations, real estate terms
and definitions, words for real estate, real estate acronyms,
and marketing phrases for real estate. If you don't see the
phrase or word listed here then it most likely doesn't exist
in the world of real estate. The author's goal was to compile
the most complete listing of real estate terminology and phrases.
Each listing contains definitions and includes the Latin meaning
behind many of the legal real estate phrases and terms; this is
the only complete compendium of legal terminology and phrases of
its kind. The language of real estate can be daunting but now
"Real Estate Phrases" has made it easy. Keep this book on your
computer or cell phone so you can refer to it often. It is a
needed reference and educational tool for business owners,
service providers and more.

LanguageEnglish
Release dateApr 9, 2015
ISBN9781311854469
Real Estate Phrases
Author

Harry Jay

Dr. Harry Jay is Director of Research for AppliedMindSciences.com, a mental health and mind research group of Applied Web Info, and is the author of over 100 books and research papers as a behavioral scientist. In his 31-year career, Dr. Harry Jay has contributed many new mental health treatment treatments and protocols using some of the new advances he has discovered in Energy Psychology. He specializes in addictions of all kinds, sexual abuse, child predation and gender relationships. He is also a board member to ePubWealth.com and serves on the science committee assisting non-fiction science writers in book publishing and promotion. As a leading behavioral scientist, he provides profiling services to the company's ForensicsNation.com unit as well as criminal psychology research to aid in identifying and apprehending child predators and cyber-criminals of all kinds. He resides in Southern Utah and enjoys the outdoors, fishing and photography.

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    Book preview

    Real Estate Phrases - Harry Jay

    Introduction – Real Estate vs. Stocks:  Which is the Better Investment?

    The questions, Which is a better investment – real estate or stocks? is like asking whether red is better than black or if a sheep dog is better than a poodle.

    There really isn’t an answer to this question because a lot of it comes down to your personality, preferences, and style and to the specifics of the individual investment.

    Very few stocks would have beat buying beachfront property in California in the 1970’s and then cashing in twenty years later.

    Virtually no real estate could have beat the returns you earned if you invested in shares of Microsoft, Johnson & Johnson, Wal-Mart, Berkshire Hathaway, Dell or Southwest Airlines, especially if you reinvested your dividends.

    So the answer, as with many things in life, isn’t as easy as it may seem.

    The Pros and Cons of Real Estate vs. Stocks

    Pros of Investing in Real Estate

    Real estate is often a more comfortable investment for the lower and middle classes because they grew up exposed to it (just as the upper classes often learned about stocks, bonds, and other securities during their childhood and teenage years). It’s likely most people heard their parents talking about the importance of owning a home. The result is that they are more open to buying land than many other investments.

    When you invest in real estate, you invest in something tangible. You can look at it, feel it, drive by with your friends, point out the window, and say, I own that. For some people, that’s important psychologically.

    It’s more difficult to be defrauded in real estate compared to stocks if you do your homework because you can physically show up, inspect your property, run a background check on the tenants, make sure that the building is actually there before you buy it, do repairs yourself ... with stocks, you have to trust the management and the auditors.

    Using leverage (debt) in real estate can be structured far more safely than using debt to buy stocks by trading on margin.

    Real estate investments have traditionally been a terrific inflation hedge to protect against a loss in purchasing power of the dollar.

    Cons of Investing in Real Estate:

    Compared to stocks, real estate takes a lot of hands-on work. You have to deal with the midnight phone calls about exploding sewage in a bathroom, gas leaks, the possibility of getting sued for a bad plank on the porch, and a whole host of things that you probably never even considered. Even if you hire a property manager to take care of your real estate investments, it’s still going to require occasional meetings and oversight.

    Real estate can cost you money every month if the property is unoccupied. You still have to pay taxes, maintenance, utilities, insurance, and more, meaning that if you find yourself with a higher-than-usual vacancy rate due to factors beyond your control, you could actually have to come up with money each month!

    The actual value of real estate hardly ever increases in inflation-adjusted terms (there are exceptions, of course). This is made up for by the power of leverage. That is, imagine you buy a $300,000 property by putting in $60,000 of your own money, and borrowing the other $240,000. If inflation goes up 3% because the government printed more money and now each dollar is worth less, then the house would go up to $309,000 in value. Your actual value of the house hasn’t changed, just the number of dollars it takes to buy it. Because you only invested $60,000, however, that represents a return of $9,000 on $60,000. That’s a 15% return. Backing out the 3% inflation, that’s 12% in real gains before factoring in the costs of owning the property. That is what makes real estate so attractive.

    Pros of Investing in Stocks

    More than 100 years of research have proven that despite all of the crashes, buying stocks, reinvesting the dividends, and holding them for long periods of time has been the greatest wealth creator in the history of the world. Nothing, in terms of other asset classes,

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