Buy Low | Sell High with Real Estate
Home prices are considerably affordable, mortgage rates are low, and rent is skyrocketing, now is the time to make your real estate move. The following key factors are the ingredients that create your real estate buying position in today's economy, allowing you, as a savvy buyer, to make your move and buy low to sell high.
- Low Inventory
There is no longer a vast pool of property to pick and choose from. The high demand homes are selling first and fast. "Luck is when opportunity meets preparedness" so be prepared to make your move in the market and position yourself so you can put in a strong offer and close the deal.
- Prices Expected to Jump
It is no secret that home sale prices have been competitively low, don't fool yourself into thinking that market conditions wont change anytime soon. Industry insiders are keeping a close eye on rising prices and predict they will continue to increase. If you are looking to buy low and sell high, now is the time to make your move!
Interest Rates will Increase
Today's interest rates are significantly low at just 3.39% for a 30 year fixed rate mortgage. Experts predict an increase of a minimum of one full point by the end of 2013 and it could potentially jump even higher. Lock in that low rate now while the opportunity is there, save huge!
For those interested in investing in real estate here are a few ways to get involved:
Apartment buildings, duplex homes, triplex property, these are all excellent options and as a property owner, you are in control of many factors including; deciding when to buy and sell, rent rates, and tennant selection. However, there can be a down side. Initially, you will need a large amount of money to get started which can pose an issue resulting in the purchase of only one or two cash flow properties leading to a lack of diversity enhansing potential risk. Additionally, consider the responsibility of being the landlord and if you are willing to make repairs, chase un-paid rents, screen tennants, and other various things that can come up, or if you would hire a management company which would add additional expenses but may eliminate headaches. Consider every aspect before you decide if this is right for you.
A REIT (real estate investment trust) is a company that raises money to buy, develop, and manage assets in real estate. This can have less risk involved than other options as you are purchasing a part of a managed real estate trust which can provide more diversification. There is no prohibitive minumum investment and they are publicly traded on major stock
exchanges providing potentially quick liquidity. REIT's are usually required to distribute 90% of income generated from real estate holdings, giving you rental income without having to fix plumbing or change a lock! (Two Harbors Investment Corp. is a local REIT example.)
REAL ESTATE RELATED STOCKS
These may include publicly traded lumber, roofing, or landscaping companies for example. Pending the contstruction market stabilization and growth, these types of companies have potential price appreciation which can put easy money in your pocket. It's a good idea to do your research and consult with a financial professional if you decide to pursue this opportunity.
These can be found in the local newspapers, online classified ad's, or by networking. For an initial investment, you are made a limited partner in a group or with an individual that will buy a building, strip mall, or some other property where the price is beyond most people's means. This can be risky so make sure the people you plan on working with are honest and do your homework.
There are litterally hundreds of thousands of ways to make money in real estate, these are just a few suggestions. Remember, buying low and selling high makes sense and makes money, you just need to follow the principle rules and be dilligent about researching whatever you decide to become involved with. Our team is happy to assist with strategizing and brainstorming ideas that can put real estate money in your pocket. Contact us
for a no pressure, no obligation consultation, were here to help!
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