subject: A Guide To Invest In Real Estate [print this page] Real Estate Investment has been always a lucrative investment for individual and organization. During 1990 average annual property appreciation stands at 6% which is 2% more than what you get from the bond, plus if that property is rented out, the owner gets additional rental earnings, plus there are many residual income from property investment.
2005 was a boom period for global economy, although foreclosure was in alarming situation especially in Florida, Amazon and other areas of US. By 2006 17% or mortgage owner in US owed more than the worth of their houses.
Foreclosure properties yield more income than the normal property as it is being auction in rushed and who ever calculates its best value after tax, fees and other deduction gets the highest yield. Normally foreclosure properties is transferred in 6 months period, means the property owner could earn good amount with little investment on the properties.
In 2008 there were 1000s of properties available in foreclosure with up to 40% below the market value. It would be a risky investment but, those who got holding power and can hold property for long time can earn good return out of it, further these properties could also fetch a good rent income as due to rising debt more and more people opt for rental properties, especially housing sector.
Real Estate Business is divided into 3 main sectors to invest.
a. Residential Housing and Apartments
b. Office and Warehousing
c. Foreclosure by Banks and Government
Residential Housing and Apartment has huge potential as with the support o government and banks it is quiet easy to acquire a mortgage on any housing properties, generally people get the housing properties and put them on rent so that they could pay off the debt before they can move in but, one has to be careful as the tenant may not pay the rent on time and situation like in 2007 where the properties price may slide down and the loan is more than that of housing property value
Second option investment is of Office and Warehouse, here it is difficult to get loan as the properties are too expensive and there is no support from Government to help those interested in buying Office or Warehouse as those who are financially sound they only would opt to invest in office or warehouse, although this is one of the best investment one can make as there is a good return and it has been observed that during the recession prices for the Office and Warehouse didn't slide that much as of housing properties
Third and most profitable is Foreclosure, there are so many foreclosure properties available with county and bank, all you got to do is to keep yourself updated with the properties available and check if it meets your pocket and risk level, once you found one you can acquire it and you can make good profit in 3-6 months time.
Real Estate Investment is one of the highest paying option but with due diligence evaluation and planning.
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