Small-scale
investors are finding the home market to be a great place to make a medium to
long-term investment. Home prices are still quite low, but they are starting to
slowly rise in many areas of the country. Now is a good time to invest in real
estateas it is unlikely that home values will go lower. Now could be a great
time to consider purchasing a home to use as rental property. You can begin by
renting it out now at a price that will cover your expensive such as mortgage,
taxes, and possible future repairs. In the long run, as home values and average
rental rates increase, you can raise rent and begin to profit or sell the home
for a profit.
Commercial
real estate brokers are also keeping an eye on distressed properties. The key
here is an instinct for what might be the next big thing. Bryant Park in New
York City is a great example. Investors purchased buildings in this once
rundown and unpopular area, and invested heavily in renovating the rundown
buildings. Word spread that great spaces could be rented for less than that of their
nearby counterparts, and the popularity of Bryant Park began to grow. Now,
about nine years after renovations first began, Yoram
Eliyahu and his contemporaries are pleased to see that the area is
thriving.
The
Value ofIntuition
While
an area like Bryant Park may seem like a lucky hit, Yoram
Eliyahu says that its transformation can happen anywhere. Looking at the
market with an eye to what is nearby already-popular spots can help make your
investment a success. Use your intuition to see what the need is in an area,
and fill that need. Additionally, your investment can create a positive in the
community, such as revitalizing a run-down area.
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