1186 - Why Low-Cost Properties are Actually More Expensive by Eric Fernwood
BiggerPockets Daily
English - January 13, 2024 07:00 - 11 minutes - ★★★★★ - 284 ratingsInvesting Business Entrepreneurship real estate success financial freedom financial independence wealth wholesaling money landlord realestate real estate investing Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Low-cost properties are appealing because you can acquire and generate income with less initial capital. However, they are actually the most expensive way to achieve and maintain financial freedom. Here’s why.
What Determines Prices and Rents?
Real estate prices and rents are driven by supply and demand. When the number of sellers equals or exceeds the number of buyers consistently, property prices remain low. If prices do increase, the rise will be gradual. Furthermore, when prices are low, more people can afford to buy, leading to fewer renters. This results in stagnant or slowly increasing rents.
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Low-cost properties are appealing because you can acquire and generate income with less initial capital. However, they are actually the most expensive way to achieve and maintain financial freedom. Here’s why.
What Determines Prices and Rents?Real estate prices and rents are driven by supply and demand. When the number of sellers equals or exceeds the number of buyers consistently, property prices remain low. If prices do increase, the rise will be gradual. Furthermore, when prices are low, more people can afford to buy, leading to fewer renters. This results in stagnant or slowly increasing rents.
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