We all realize the real estate market has been a little �down in the
dumps.� But things are looking better than you�d think! Though rock
bottom seems certain, we may be moving back up sooner than we thought.
We seem to forget that no matter which direction the market is going,
Americans will always need a house to live in! So not to fear, just
think long term investments.
If you own property or want to make money in the market today, the way
to do it is to rent out property. We have always been a nation of
renters. Over the past 50 years, however, we gradually moved towards
home ownership. There are still many people, however, who rent and some
people who prefer to rent. Home ownership is a responsibility that not
everyone wants to take on.
You can make money in the real estate market today by renting out
property to others. You can rent out your own home rather than selling
it if you are planning on moving, or even purchasing property to rent to
people. If you are trying to find a rental investment to buy, there has
never been a better time. Housing prices are lower than ever as are
mortgage rates. You can purchase a home or a condominium to rent to
others and also be a long term investment for you.
Be careful if you purchase a condominium unit with the intent of renting
that there is nothing in the bylaws that exclude renters. You should
also make sure that you do your own market analysis of the area. How
much are other homes or condominiums being rented for each month? You
need to find out whether the rent will cover not only the mortgage
payment, but also the taxes and insurance.
Do your homework carefully before purchasing property to rent to others.
This can be an ideal way to make money in real estate today, but you
have to make sure that you understand the market as well as the tenant
laws. Tenant laws usually favor the tenant, so make sure that you screen
any applicants thoroughly. You should also take a good security deposit,
especially if you are renting a single family home out. The security
deposit should be returned when the house is vacated and in the order as
agreed to in the lease.
If you invest in property now, you can take advantage of the low housing
prices as well as low lending rates. You can then hold onto the property
for several years while renting it to tenants who will, essentially, pay
your mortgage. When the real estate market moves towards a sellers
market, which it eventually will, you can have the property appraised.
Chances are that it will be worth a lot more than for what you pay now
and by selling, you will get a sizeable return.
Making money in the real estate market today is not hard if you are
patient and willing to look for the long term investment. Always look to
the best locations in which to invest in property as they will tend to
grow in value quicker than any other locations.
Return to Brokerforyou's real estate articles