For years, investors were making use of the �flipping� technique to
make their money on real estate. The reality is clearly evident in
recent real estate events. This is plain and simply not the best way to
invest and it�s a part of the reason our economy started to fall in the
first place. So now, let�s go about this the smart way: Long Term
Investing!
Investing in real estate today is really not unlike any other time.
Years ago, people were playing the short term investment �flipping� game
and various people were making good money. This is really not how real
estate investing is supposed to work and it is no wonder that the bottom
fell out of this market. Real estate is mean to be a long term
investment opportunity.
You can invest in real estate today just as easily as you could have
years ago. Actually, you are better off to invest in real estate today
more than ever. The reason for this is that not only are the housing
prices low, but the mortgage rates are lower than they have been in
decades. The Federal Reserve just lowered the interest rates again in a
futile attempt to stimulate the economy. You can take advantage of this
fact and buy low with a low interest rate.
Be all set to be patient with your investment for at least four years.
This is a wise rule of thumb when it comes to real estate investing,
anyway. The old rule was that you should be prepared to live in a home
five years if you were going to make any money. This rule still applies,
but as the prices of homes have reached the bottom, you can safely say
that things will take a turn for the better in four. The longer you can
hold onto the home, however, the better you are. This is especially true
if you are using the home as your residence.
Investing in real estate is a lot like playing poker. You have to know
when to stay in the game and not to fold. Many people who have property
today are becoming alarmed and selling their homes to get out of the
market. They are folding too early. In order to make money in real
estate, you have to know when to hold on to the investment and the right
time to sell. The good part about this is that there are usually plenty
of people around who will tell you this. There are also flags that you
can look for. When real estate agents start contacting you for business,
you know that business in your area is hot and this is a good time to
sell. Follow the trends.
The real estate economy is often conversed on television and news
reports as well. If you own property or hope to own property, you should
watch these programs so that you can learn to pick up on the trends.
This is how you learn to make money in the market. You will be more in
tune with the entire real estate market if you take the time to learn
about it and the growth trends.
The most essential aspect when it comes to real estate investing is
always the location of the property. The better the location, the more
money the property is not only worth, but the faster it will appreciate
in value. A property in a blighted location may not appreciate in value
at all, it may depreciate in value or stay stagnant.
Look for homes in a good area where people want to live and make bids on
foreclosed properties or others where the owner is willing to sell. You
can get a really great deal because of the fact that there are more
sellers than buyers and also take advantage of the low interest rates.
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