Real Estate Investment - When, What and Where?
Real estate investment is one of best options for many investors
to create wealth while enjoying numerous tax benefits. A real
estate investment decision involves much more than choosing a
right location to buy your dream properties. Besides where to
buy, there're questions of what and when to invest in real
estate.
When
Like economy and stock market, real estate often runs in cycles
of approximately 7-10 years. The value of real estate often goes
up for a few years, tops out, keeps flat or goes down for 2-3
years. The availability of low interest rate mortgage and
recovery of economy will eventually jump-start a new cycle of
real estate growth. Novice investors tend to invest at the top
of the market while wishing the market will go even higher to
reap a quick profit. Smart money, however, buys real estate at,
or near, the bottom of the market when most of investors are
reluctantly and don't have the financial power to buy.
Beside the life cycle of real estate market, individual property
has its own life cycle. Properties can be purchased at pre
construction, as new home inventory or as owned properties.
What
Single family home has traditionally been the preferred option
of real estate investment for many individuals. Instead of
selling their first residential home and moving to a bigger
house, some home owners choose to keep their first home and rent
it out by using a property management company. The new trend in
real estate investment is to own hotel condos or vacation homes.
There're many advantages of owning hotel condos or vacation
homes.
Where
Once your investment options are not limited to residential
properties, the location of property isn't limited to the place
where you live. Hotel condos and vacation are, of course, often
located at well-known resorts, from Vail Colorado to Miami,
Florida.
Real estate investment is a complex decision making process.
Most investors will seek help from real estate professionals.
Nowadays, with the vast amount of information freely available
on the Internet, search engines are where people start doing
their own homework. For instance, typing "Miami Pre Construction" in Google, Yahoo or MSN search
engine, you'll see a list of pages where you can locate the
information about buying Miami real estate
at pre construction price at Miami, Florida.
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