Contrary to popular opinion, there's no perfect time to invest in real estate. Whether you invest in a slow market or a rapidly rising market, you can make a decent return on your investment if you know what to look out for. Read our suggestions below that can help your investment dollars grow as much as possible.
Buying a property
Buying a property in a hot real estate market Even though property prices might be higher than in more lean years, you can still find plenty of properties that you can flip for a profit. Look for foreclosures or "as-is" properties, as these places should be listed substantially below current market prices.
Just calculate how much it would take to invest in the foreclosure or "as-is" property to make it worthwhile. For instance, if you find an "as-is" property on the market for $400,000, while houses in the market are being at $550,000, it might make sense to purchase the place if you can renovate it for less than $130,000 (taking into account commissions and closing costs).
Think about your plans
Don't forget to take the neighborhood into consideration though. If you plan to build on a second story and the majority of homes are one-story houses, it might be a tough sell down the line. If you plan to renovate a house in a rapidly declining neighborhood, then it might also not be the best investment.
Buying in a slow market Contrary to popular opinion, you can find opportunities in a slow or falling market. Sellers are often anxious and highly motivated to sell their homes in a market that?s not moving.
It's a time when buyers have the upper hand and can really offer lower bids on properties, sometimes as much as 10 to 15% below the asking price. If the property is in slight disrepair, investing a few thousand dollars can really make a difference when you want to flip the house.
Foreclosure properties
Foreclosure properties are another great opportunity in down times. With foreclosures being priced at thousands of dollars below market prices, you can renovate a place and still flip the place for a reasonable profit.
Just make sure to choose a neighborhood where there aren?t a lot of foreclosures; otherwise, the overall market prices will continue to fall in that area and you'll have a harder time in recouping your investment.
Finding homes for rent or apartments for sale has never been easier with online property listing sites.
