We live in a world with uncertain investment opportunities. Although people put a tremendous amount of effort into buying and selling, they make the wrong decisions as often as the right ones. About a year ago, I was just getting into business myself. I was talked into buying land by someone who'd acted like they knew what they were doing. He told me that buying real estate was the surest investment that there is. Buying and selling real estate, you're almost guaranteed to make a profit – or so he told me. Although real estate investing is an extremely good opportunity, I wish I had known some things then, before I got involved. You should never make an investment, whether you buy real estate, stocks, futures, or some other commodity, without knowing what you are doing.
You see, real estate buying is as complicated as any other area. It is true that buying real estate in the long term will tend to profit you. The population continues to grow, people continue to develop property, and property values continue to go up. If you buy real estate, you have a number of advantage. Buying real estate allows you the option of developing the land or holding on to it to see if its value goes up. Once you develop it, you can rent the buildings out, sell them, or use them for your own purposes. Buying real estate makes it easier for you to start your own business because it can furnish you with a location.
Still, it is important that you don't treat it like it is a sure thing – like nothing can go wrong. Nothing is a sure thing. There are no perfect investments, and even buying real estate can have its problems. In my case, I was talked into buying real estate in a decaying inner city. There was an urban renewal going on, and I thought that I would take a chance and see if my investment paid off.
It didn't. I could barely rent the building out, and the upkeep costs were more than what I was making. Although I eventually made a profit buying real estate, it took me much longer than if I had made shrewd investment from the beginning. No matter what anyone tells you, buying real estate in a bad area is a bad decision. Unless you have some compelling reason to believe that things are going to change very dramatically and very quickly, stay away from it.
Friday, February 22, 2008
Real Estate Out Of Reach
Most of us dream of owning our own home! The whole process of renting month after month and consistently forking out large sums of money for practically nothing tangible gets old fast. You know what I mean if you're currently residing in an apartment. It sucks to not actually have anything to show for it once you leave. On the other hand, when buying real estate, you do acquire something in return. You end up with a home. Hopefully one that appreciates as the years go by. This way if you eventually decide to sell it and find a new house, you can make a nice chunk of money on your investment.
In regards to the current real estate market, if you're considering purchasing a home, I wouldn't put it off too long. Right now is commonly known as a "buyer's market." That means you can get a wonderful deal on a home. Most likely you can find a piece of residential real estate that would have normally been out of your reach. Since there is a plethora of homes on the market right now, prices have plummeted. I spotted a house in my neighborhood just yesterday afternoon. I noticed that the price has dropped 40 grand since they originally listed it. This no doubt stinks for the sellers, but it's great for those who're in the market to buy. After speaking with a local realtor, I found out that we are slowly but surely coming out of the slump. She thought that within another year things will turn around. Then homes will be priced more in regards to what they're worth. At that point buying real estate won't be so enjoyable for the buyers. So take advantage of this prime time while it lasts!
Plenty goes into buying real estate. You can't simply glance at a home and say SOLD. Well, I suppose you could do that, but I don't recommend it. You'll want to consider the homes appreciation thus far over the years. You should take a look into the crime statistics of that particular area. You should also see if registered sex offenders live nearby. This can very likely affect the re-sale of the home. Most families check into these matters. And finally, if you have children, you should always consider the school districts and how they rank.
In regards to the current real estate market, if you're considering purchasing a home, I wouldn't put it off too long. Right now is commonly known as a "buyer's market." That means you can get a wonderful deal on a home. Most likely you can find a piece of residential real estate that would have normally been out of your reach. Since there is a plethora of homes on the market right now, prices have plummeted. I spotted a house in my neighborhood just yesterday afternoon. I noticed that the price has dropped 40 grand since they originally listed it. This no doubt stinks for the sellers, but it's great for those who're in the market to buy. After speaking with a local realtor, I found out that we are slowly but surely coming out of the slump. She thought that within another year things will turn around. Then homes will be priced more in regards to what they're worth. At that point buying real estate won't be so enjoyable for the buyers. So take advantage of this prime time while it lasts!
Plenty goes into buying real estate. You can't simply glance at a home and say SOLD. Well, I suppose you could do that, but I don't recommend it. You'll want to consider the homes appreciation thus far over the years. You should take a look into the crime statistics of that particular area. You should also see if registered sex offenders live nearby. This can very likely affect the re-sale of the home. Most families check into these matters. And finally, if you have children, you should always consider the school districts and how they rank.
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