Monday, August 13, 2012

Where Should You Invest In Real Estate ?

Investing in real estate is one of the few ways for the average person to gain wealth. Can you become rich overnight? Not very likely. Real estate investing should be considered a long term strategy that can gain you tremendous amount of wealth over time but you must do your homework first. The majority of people that are getting into the real estate investing market are simply purchasing a home in an area that they are familiar with and then wonder why they are not rich after a couple of years. Do a search on the internet for real estate investing and you will find hundreds of ways to get rich quick through real estate investing. And it?s true, if you are selling books, DVDs or real estate seminars you can become wealthy in a short period of time. If you are investing in real estate it is just not going to happen without the proper up front research.There are three main points you must consider before purchasing your first property and they are location, location, location. This is a rather simplistic view of Ray Ban Clubmaster real estate investing but it has never been more true than today. Thousands of people are getting into the real estate market, and yet over 90 percent of the foreclosures in the market today are from non owner occupied homes. This means that people that have purchased a vacation home or purchased a second home for investment purposes Cheap Ray Ban have gotten into financial trouble. This Usually happens because they did not purchase that asset in the correct location at the correct time. So the question is, how do you find the correct location to invest?Any locations can be the correct location to invest in real estate as long as the timing is right. There are four cycles of real estate investing and the cycles can run from 7 to 40 years depending the the intelligence of the local government. These cycles are Buyers Stage 1, Buyers Stage 2, Sellers Stage 1 and Sellers Stage 2.Buyers Stage 1 ? strategy buy and hold.1. Oversupply of properties on the market.2. Prices and rents are falling.3. You will see a spike in the properties time on the market.4. Unemployment is at its highest.5. New construction is overpriced and sales are stagnant.6. Construction jobs are at an all time low.7. Foreclosures are at its highest rate.8. Investment properties are not being purchased or being purchased at a slow rate.Buyers stage 1 is a declining market and you will need to shop around for a good investment because you do not know how low the market will go. If the local government is not taking action at this point then the market turnaround will be delayed and more care will be needed taken. Always purchase a new property with a lot of equity and a good cash flow to help minimize your risk.Buyers Stage 2 ? strategy buy and hold ? also known as the Millionaire Maker.1. No new construction.2. Demand for housing is increasing sharply.3. Properties time on market is decreasing.4. Rents and Prices for property are at its lowest.5. Foreclosures are starting to decrease.6. Job growth is increasing.7. Rehabbers are purchasing an increasing number of properties.8. Fewer properties are getting on the market.9. Demand for properties is increasing because buyers are able to qualify at the low prices.Buyers stage 2 only happens after the local government is starting to attract new business into the area. For every one new job brought into the area three new jobs are created. These newly created jobs are the butchers, bakers and candlestick makers. In other words the support jobs that are needed to service the new people in the area. I believe that the most important thing to watch for in this market is the job growth rate. New people coming into the area will require housing which will drive up the price. Your local economic adviser counsel is a good place to look.Sellers Stage 1 ? strategy buy and sell quickly.1. Demand for property is increasing.2. The time on market for properties in decreasing.3. Property taxes are on the rise.4. Unemployment in decreasing.Sellers stage 1 is a very risky time to be investing in property because you do not know how long before the sellers stage 2 will occur. Be sure you know the signs of the next phase so you can get out of the market at the best time.Sellers Stage 2 ? strategy sell, sell, sell.1. Supply of properties has sharply increased.2. Time on market is increasing.3. Construction of new homes is increasing.4. New job growth is slowing.5. New real estate investors are jumping in.6. First time home buyers are increasing.One of the ways to watch for new construction of new homes is to check with the local building Ray Ban Aviator Sunglasses permits department. You will be able to pick up some good deal from the new first time real estate investors that jump in during the sellers stage 2 market. Always do your home work prior to investing in real estate.

Source: http://all-articles-directory.com/where-should-you-invest-in-real-estate/

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