Invest

Since late October, I have been educating myself on sound investment strategies. It has been quite an eye-opener to realize just how unaware I have been. From everything I read, I have come to the realization that most often, real estate is one of the best investments around.

That may seem like a strange statement to you, especially if you've noticed the recent downturn in the real estate market. Still, overall, real estate tends to be the best performing asset with the least out of pocket expense.

For example. If you wanted to buy $100,000 in stocks, how much would it cost you? The answer is $100,000. On the other hand, if you want to buy $100,000 of real estate, how much will your out of pocket expense be? The answer is probably around $10,000 or maybe even less (if you're creative).

If you buy property and rent it out, your loan is being paid for by someone else. Add to that the fact that real estate values typically double every ten years AND the many tax deductions you can take if you own property. All in all, these factors and more combine to make a pretty decent investment option.

This year, house prices are expected to decline. This is bad news if you're looking to sell, but great news if you're looking to buy. Basically, in shopping terms, this means that houses are going to be "on sale" this year.

I plan to take advantage of this by purchasing three income producing properties before the end of 2008. That is my current investment goal. I would strongly encourage you to consider doing the same while prices are low. Before you know it, prices will be back on the rise.

It will be interesting to see, when 2008 concludes, if I followed through on this goal.