The growing domestic real estate market is tempting first-time buyers into purchasing property. Large investors have stopped investing in the local market and small buyers can now find new constructions, foreclosures, and short sales available for investment. On top of that, real estate investors like Jeff Adams note that mortgage rates are still affordable and lenders are willing to sanction loans to buyers in an effort to rejuvenate the real estate market. A word of caution though; the real estate market has just recovered from the 2009 mortgage crisis.
Although property is available, there are a few things you should know while investing in the real estate market.
Buy Low Sell High
Although this may seem redundant, it is quite true and very applicable in the 2015 real estate market. Buyers can choose from short sales and foreclosures as these properties are usually priced below market rate. A savvy real estate buyer can find property in almost any price range, renovate it for a small fee, rent or re-sell the property at a neat profit. However, it all comes down to finding and buying affordable property priced at below-market rates.
Choose Livable Properties That can be Rented
It’s easy to find cheap properties. However, that does not mean you choose a property located in an empty neighborhood or a high-crime area. Choose a property that requires minimal repair, is located in a good neighborhood, and that can be rented immediately. In case you require immediate cash, you can also move into the new property and then rent out your original home.
When you buy as owner occupant, you are more likely to get financing with a lower interest rate and the down payment will be smaller as well. By choosing livable properties, you are also going to know what is wrong with your new home, you can make repairs and you know that you can rent out the new home quickly in the future.
Stay Away From Large Cities
Although this may be your first choice, think about it before you invest. Most large cities are also reaching saturation point in terms of houses and land. Property rates are also very high. It’s a far better idea to invest in satellite cities or towns located close to large cities. For example, in California, communities like Freemont have good homes on sale at affordable rates. Although the community is still developing, it has almost all the amenities found in a large city with none of the drawbacks. Choose communities like these to invest in and stay away from high vacancy areas or densely-populated large cities.
Jeff Adams #1 Real Estate Trainer states that investing in real estate is simple if you make informed decisions. Take the time to learn as much as possible about investment options, mortgage rates, lenders, neighborhoods, etc. before you jump into the market. The more you learn, the better you will be able to find and invest in affordable properties and make a success of your real estate investment career.