subject: The Smart Thing To Do In Real Estate Investment [print this page] Real estate investment has never been more confusing as it is now when were experiencing an economic recession. For instance, many are advertising that now is the time to invest in residential real estate when so many houses are selling at a loss. But with the millions of seasoned real estate brokers out there, not to mention the millions more who just entered the field, its hard to imagine how this might be the smart choice.
Think about it. Youll have a lot of competition, which means youll have to up your game and think of strategies to make people choose you over the thousands of other real estate brokers and agents in the city! Plus, you have to deal with clients who just went bankrupt. Imagine how youd be if you just lost everything youve worked hard for. Im sure there are a lot of tears shed, as well as a depressing atmosphere that surrounds you. Now, visualize yourself dealing with this kind of people day in and day out. Wont you feel depressed too at the end of each day?
Thats why residential real estate is not the smart choice when you think about the best place to buy investment properties. Its simply too crowded and stressful. Now, lets talk about buying commercial investments. It would cost a lot of money and it is a bigger risk than residential. But why do I know that this is the smarter choice?
Well, first of all, when buying commercial investmentsand any kind of investment for that matteryou need to really know what it is youre investing into. Research and investigate. Interview people who works in that field so you know if its the best place to buy investment property. This is so youre prepared to take the necessary risks and youre aware of what is it exactly youre getting yourself into. This is what Ive done; and heres what I found out.
First off, the entire commercial real estate industry is not that stable. For instance, office buildings have a loan failure rate of 63% and apartment complexes are at 58%. Furthermore, their occupancy rate to break even needs to be between 80-90%! So this means that youre taking a higher risk when you invest in these sectors. This is also not smart.
So what you need to do is to find the sector in commercial real estate where you can find the best place to buy investment property. Like Ive said before, you have to be smart and do a lot of research. So what I did was I found the best sector in commercial real estate to invest. Some say its recession-proof; and based on my research, theyre not wrong! It has consistently high demand because its unaffected by the economic recessionthe currect financial crisis has even boosted the demand for it! Plus, it has the lowest loan failure rate at only 8%, with an occupancy rate of 67% to break even, which is why banks love approving loans when it comes to buying this particular kind of investment property!
So what is it? Drum roll please. Its none other than self storage investment! You might be a bit surprised. Its because it has been quiet in its success. No splashy ads needed because customers come right by your doorstep! People need a place to store the stuff they cant tolerate throwing away or sellingstuff that hold too many special memories. And being the sentimental packrats that we are, we just find a place to store them as we downsize into a smaller place.
