Real Estate Journal

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The second most common myth in real estate investment is: you must start with small deals, big investments are very risky. Generally, mortgages on smaller properties are usually secured through the the buyer’s own earning capacity and personal wealth. On the other hand, a bigger investment loan, is protected by the value of the property itself – more like the property itself is being used as a collateral to the loan. Now, that means lesser risk to you. The value of your rental property like your house for example will increase through the years, depending on the kind of neighborhood you bought into. You can increase the value of your property a bit, like when you do some renovations, but the increase will not be that much. So it pays to buy into the right if not ideal neighborhood. However, on rental properties such as apartments, the increase in its value will depend on how much income it actually generates.