If you are thinking of buying an investment property right now and you have money to put into it I know what you are thinking and it probably goes along the lines of: “will my money give me the return I expect or will it have to wait for years before I can safely sell and cash in?”
Over the years the name Jeff Adams has become synonymous with quality real estate advice and it is no accident. On a daily basis I come across a great many real estate cases in many different States and it tends to give me a cross-section image of the market in the continental US which allows me to make informed choices which are better than average.
So, let’s look at the factors governing the housing market now which is making the press for all the wrong reasons with foreclosures rising. An investment property is considered good value when, broadly speaking, one of two factors are being fulfilled: 1. The property is being bought in an area that is undergoing development and where demand is rising and is likely to appreciate sharply in value or 2. The house is being bought at a price that is well below its current market value and this creates a hefty safety margin which creates built-in liquidity right from the start.
How does this fit in with current market conditions? Well, while it’s true foreclosures are rising, they are also creating opportunity by bringing into the market undervalued properties in less than perfect condition in areas which would normally command a far higher price. This means that the smart investor who is able to spot an opportunity will be able to pick up a bargain at a price that safeguards the investment and, with minimal input, end up owning a property which will pay handsome dividends as the housing market recovers.
This takes care of the second requirement for investing in real estate. As to the first, well, there are a great many areas in the U.S. which are undergoing development right now. Panama City, in Florida, is a case in point with houses there predicted to go up to 75% current value by the year 2012 after the completion of the planned international airport there.
As usual with investing in real estate you need to snap up a property at the right time. Manage to do that though and from an investor’s point of view real estate will give you a far greater return on your money than almost any other form of investment. The U.S. housing market is full of opportunities on both fronts mentioned above and it requires a little research and some luck to help you make a fast buck.
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