We all know about secured loans and the fact that we are now undergoing a mortgage crisis. As more and more homes are being foreclosed, there is an open for real estate investing to become as profitable as investing in commercial property. Real estate programs are there to act as a perfect advisor for investors in order to fulfill their investment property planning needs.
As of 2005, a total of 850,000 properties were foreclosed and the number was found to have increased every quarter (though, these numbers have dropped dramatically over recent years according to Market Watch). At present, the residential real estate market is over $20 trillion in size and is considered as one of the biggest industries in the US economy. It is said that that single family home market is a couple of times larger than the commercial real estate industry. Real estate programs help take care of all the real estate investments without the headache.
A lot of people are already engaged in residential real estate investing and just like any business it takes a lot of diligence and hard work in order to be profitable. It is not possible to indulge in successful real estate investing ventures overnight. Becoming a successful real estate investor doesn’t happen overnight. Darren Smith, owner of Sell My House to Smith, told us, “In every business venture, you need to create an investment plan so you know what your targets are. By knowing what your goals are, you will be able to execute your plan in accordance to your aims for your business. A real estate investment needs expert advice in order to ensure the conditions are accurate.”
Unfortunately, with the stock market at a relatively low position and the low price of real estate properties are wondering: is this the right time for real estate investing? How will an investor know when to start investing in real estate? Right timing is very important for real estate as it could spell how much profit you can gain from an investment. There are many statistics online which you can use to help you with your investment plan. You will, however, need to be aware of the factors that affect real estate valuation. Real estate investments need smart planning for positive results.
1. The economy: If you are indulged in investing, then you must know the information such as employment levels, income levels, purchasing power, and availability of financing, interest rates and transaction costs.
If there are more people who are employed, there is greater chances of making a sale, more if income levels and purchasing power are both high, families and individuals can now purchase goods and services which will increase their wellbeing. It is a well known fact that most people would want to have their own homes, most especially families with kids.
The availability of financing is important for a real estate investor as it allows you to purchase investments without having to use cash out of your pocket. The lower the interest rate, the lesser you will have to pay. This is also true for a buyer.
2. Social factors: Families would like to live in a community that has high societal support. An accepting community, the availability of nearby schools, shops and offices are one of the most important things that potential clients consider. Safety and security is also very important. With these lacking, there is a very low chance that you can sell residential properties.
The political climate, and the environmental location combined with these two other factors will help an investor find out when is the best time to invest in real estate. If you are investing in such programs, then it is your job to read resources if you want your investment to grow.
In the real estate investment industry you have to be sure to stay on top of things, that being said our residential real estate investing newsletter will help you to do just that. We provide wonderful insight on this fascinating industry and will surely prove to be a vital tool in regards to your efforts to dominate this business.