What exactly does it mean to trade real estate as long as you're trading up in value ? How does the real estate generate income ? Anything else that you could possibly tell me about real estate would be the best, thanks:)
When you trade up in real estate, you're not actually trading anything. You're selling a property and using the proceeds of the sale to buy a better, more expensive property. Real estate only truly generates income by being rented or leased out. You buy or own the property, and you charge someone rent to live there. If this income is greater than what it costs to own it (mortgage, taxes, insurance, etc.), this is called a positive cash flow and you're making money. You can kind of consider a property value going up over time as being income generated. But, this income is only on paper, and is not realized until you sell and take your profit.
