Sunday, August 23, 2009

Why Invest in Real Estate?

This is a good question, especially in the current climate with many people losing their shirts as well as their homes in this most recent recession. But when you look at those who have lost their homes you find that many of these people have bought way above what they could truly afford, bought poorly, been advised badly, have not taken appropriate steps like mortgage insurance to insulate themselves or a combination of all of these.
Their situation has been further hampered by the banks and other lending institutions. Once upon a time these organisations would screen every application thoroughly and if there was any problem you got turned down. With the pursuit of the big profits for the big bonuses, these safety checks became very relaxed, and hence this became a major cause for the crash we have had.
So after going through all of this why would I say that investing in real estate is still a good thing. Easy really, just look at the history of property. After every fall comes a rise, and with every fall and rise comes opportunities. And unlike the share market, property is real, not something on paper. When a share market business crashes your bits of paper are worthless. When the property market crashes you still have a house which you can rent out or sell if you are really desperate.
Give me the property market anytime for its long-term prospects and safety. Happy investing.

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Thursday, August 06, 2009

Real Estate Investing and the Recession

Do the rules change for property investing when there's a recession on? Yes and no. No because if you have a solid foundation of rules then they are going to serve you well no matter what the situation. For example if you have decided that you will not purchase a house unless it is returning at least 10% on its purchase price then that's a pretty good rule no matter what the state of the economy. Yes because you might want to change this rule so that you will only purchase a property investment if it is returning a minimum of 12% on its purchase price.
During a recession you can probably get these sort of returns and even better if you really go hard.
However whether you want to tweak your rules during a recession and the consequential housing downturn or not, there is one indisputable fact about a recession. If you have funds available for property investing then you are in a great position to purchase the bargains that inevitably hit the property market. And if you're really keen you can by-pass the real estate agents and advertise for houses yourself. It's amazing how many desperate people who are out there that want to deal with you rather than a real estate agent. They see you as a savior and someone who is going to save them money. As long as you stick to your rules and make it a win-win deal you will be laughing. All the best in your property investing.

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Sunday, July 01, 2007

I have been investigating the property trading scene in my area over the last 2 months and have been away from my computer. However I'm back now and I just want to share what I've been up to. Trading properties is certainly a great way to get some cash flow happening, especially in these times of high interest, high prices and low rental returns. I have linked up with a couple of traders who sell 2 or 3 houses a week making about $10,000 per sale and have managed to pick up a bargain or 2 from them. I am doing this with a business partner and this means we can spread the load. There a 3 things I have picked up on. Firstly, you need to make sure the correct structures are in place, secondly that you know your area so that you know you are getting a good price, and thirdly that you sell it yourself below valuation so that you not only get a decent profit for yourself but for the person who is buying it off you. This creates a win-win situation.
And do it quickly because turn-over is the name of the game. One other crucial factor is to not get greedy. Afterall if you can make $5000 a week trading properties that's $250,000 a year so why hang out for a couple of extra thou when this could cost you in time and money.
Happy investing and remember if you have family or friends who are interested in property investing send them to www.realestaterealinfo.com

Wednesday, May 02, 2007

What to look for

I was talking to a real estate agent today about a property I wanted to put an offer on. He told me about the many positives of the property. I should point out that the property itself was just an average looking 2 units by 2 beddie place, currently under-rented by about $30 each so that is another plus. However the major positives that he talked about was the brand new major shopping centre and movie complex which had just opened and is a 2 minute drive away, the new business park which is being constructed and is a 10 to 15 minute drive away, and the water views that are available from both units. These are pretty good pluses and make the units desirable rentals. So have I put an offer in on these units. Too right I have!
When looking for investment properties it's a good idea to look at factors outside of the property itself as these can add real value. There are a lot of things which you need to consider as a property investor besides the property itself. Blog in with your comments on what these might be which can add or detract from a properties value. Happy investing and remember if you have any friends or family who are interested in property investing send them to www.realestaterealinfo.com

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Sunday, April 29, 2007

Property Investing Resources 3

I am currently reading the book "Why We Want You to be Rich" by Trump and Kiyosaki. It's an interesting read with the helpful comments and tips. Their reputations as authors and investors speaks for itself and they don't need to justify what they have done. However both of them feel that the USA and the world economies are heading for trouble because of a shrinking middle class. They feel there is a need for the middle class to strengthen their financial situation which will strengthen the wider economy. They then offer some general strategies and motivation to achieve this. Although I found their scare-mongering a bit hard to believe, the underlying message that people need to do more about their financial situation cannot be ignored. We all should be concerned about our future wealth as Western economies will come under increasing threat from developing countries. Certainly this book is entertaining and has some helpful tips. Have you read any interesting books lately. Blog in with your opinions on this one or any other book whose theme is investing and/or motivation. And remember, if you have any family or friends who are interested in property investing send them to www.realestaterealinfo.com

Wednesday, April 25, 2007

Property Investing in Uncertain Times

The media and government and business people and Treasury officials are all talking the property market down. Interest rates on mortgages are increasing, the doomsayers are predicting a market correction, and the government is talking tough on property investors. These things are nothing new. There have been property market corrections in the past and there will be more in the future but at the end of the day, real estate has appreciated continuously since records were first kept. The thing property investors must do is future shock proof ourselves. We must have strategies in place which will help us through the down-times. One thing I do is ensure that I can hold on to a property in the medium term by either finding one that has a high return which will cover all the expenses or one that will appreciate in value quicker than most and the costs can be offset against my other investment properties. How about you? What strategies have you got to future proof yourself? Blog in with your thoughts and remember if you have any friends or family who are interested in real estate investing send them to www.realestaterealinfo.com
Until next time happy and successful property investing.

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Tuesday, April 17, 2007

Gotta Keep Moving

I have been away from the computer for a few days, mainly because I've been working but I also took a bit of time off over Easter to spend with family and friends playing rugby and watching cultural events. This was a great way to unwind, but it also recharged me and I regained the energy to get stuck into my investing. So since Easter I have visited another town and put some offers in, met with my mortgage broker to re-finance, obtained valuations for some of my properties, put another offer in for a property in another town where my niece lives and works for a real estate agent, and helped my son organise his stuff so that he can reach his goal of owning an investment property before he turns 20 at the end of this year. Quite a bit has been done, but it's not over. I still have a section that I want to build on so I am in the middle of getting quotes for that as well.
How about you? Have you had a break and now you are getting into it? It's true when whoever said that momentum creates results. I have certainly had some good outcomes. Blog in and let us know what you are doing to get the results you want.
And don't forget, if you have friends or family who want to learn about investing in property send them to www.realestaterealinfo.com

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