This is the perfect time to invest in real property.
With the low home prices and equally low interest rates, experts agree that this is the perfect time to invest in real property. Add the fact that the real estate market is well on its way to recovery and you have every reason to consider becoming a real estate investor.
Investing in real estate is also considered to be a wise move since equities continue to surge while fixed-income yields remain historically low. As a matter of fact, the S&P/Case-Shiller 20-City Composite Index which measures the value of residential real estate in 20 major metropolitan areas in the US reported that the average price of residential homes is up 24% as compared to what it was in 2012. On the other hand, the national home price index rose by 6.2% in the 12 months ending in June this year.
According to the annual forecast report released by Deloitte, the Real Estate Research Corporation (RERC), Deloitte, and the National Association of Realtors (NAR), 2014 is a great year for commercial real estate investments as well. According to the data collected by the research firm Green Street Advisors Inc., the value of commercial properties rose by 8% in the 12 months ending in January 2014.
People with considerable assets also plan on investing in real estate investment trusts, collectibles, private equity and precious metals this year.
Tips for First Time Real Estate Investors
If you are ready to claim your piece of the action, here are some tips that you should consider to make sure that you get the most from your investment.
- Devise a strategy. Know what you want to do and determine what type of property fits your strategy. Do you want to invest in residential houses and become a landlord and/or restore and flip houses for a hefty profit? Would you rather buy land that can be developed or invest in commercial real estate? You decide.
- Find a partner. If you are investing in real estate for the first time, consider finding an experienced real estate agent or a seasoned real estate investor to learn the ropes.
- Make sure you have enough capital. Whatever your strategy is, you need to have enough capital to handle the ups and downs that come with it. Remember, cash is King in real estate.
Investing in real estate can prove to be a very lucrative venture in 2014 since there are a lot of affordable houses available in the market and money is cheap to borrow. Without a doubt, this is the perfect time to invest in real estate so don’t let this opportunity pass you by.