YoramEliyahu knows that right now is a wonderful time to invest in real estate. As with any investment, the goal is to buy low and sell high, and right now real estate prices are low. The signs of rising prices are all apparent: foreclosure rates are down several months in a row, new construction is up, and home sale prices rose slightly last summer over the summer before. Immediately after the real estate crash which began around 2007 and extended for several years, investors were reluctant to buy distressed properties because it was unclear how much farther prices would plummet. Now prices have evened out for a few years and are starting to increase in several key markets. The signs are clear: recovery is growing and now is the time to start investing if you have not already.
Getting started depends on your goals. Let’s start with rental homes, an area many beginning investors begin with. Now is an optimal time to start investing in rental properties. When investing in rental property, the most common strategy is to buy a home and rent it out at a rate that covers your expenses.Once the home is paid off, the rent becomes profit. The benefit of buying rental property when prices are low is that you do not have to wait until the home is entirely paid off to profit. As the market continues to rebound, rental rates will also rise and you profit from the difference between the increased rental rates and low mortgage. Or, you can sell the house when real estate prices increase and make a profit on the home.
Another option is joining a real estate investment group. If you do not want to be a landlord who must deal with the needs of tenants, a real estate investment group may be the perfect choice for you. In this scenario, a company buys or builds condos or apartments and allows investors to buy them through the company. Usually individual investors have the option of buying just one unit or multiple units. Instead of having alandlord, the investment group manages all the units as one block. The company charges a small percentage of the monthly rent to pay for this service, but it frees you up to spend your time elsewhere.Many investors likeYoramEliyahu find this valuable.
Yoram Eliyahu suggests looking into all your options before making your final choice. There are other investments available, such as REITs, which you may find work well for you. Headvises new investors to take careful stock of their finances and begin by investing a comfortable amount. Once you get your feet wet you may findthat diving in feels great!