Is Real Estate Investing still solid in todays market?

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

When the same local market is at the low end of the appreciation cycle, reaping a profit on the family home can take a good deal more time but the reward can be just as satisfying if price and location and carefully considered.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. According to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than, the rate of inflation. Housing prices actually rose an average of 10 percent during the recessions of the mid-1970’s and early 1980s.

CENTURY 21 statisticians report that the rate of home appreciation since 1990 has been around five percent nationally, with inflation hovering around four percent. Homeowners, obviously, are still staying ahead in the real estate game on average.

And, with mortgage interest rates the lowest they’ve been in two decades, real estate today is a more attractive investment than it’s been in years.

First-time buyers are the big winners in this environment. Drawing up a budget can help you and your family decide on what you can afford. Once you’ve determined a price and picked your desired community, shop around to find the best house you can buy for your money. This strategy can help you realize greater appreciation two or three years down the road.

This is also a good time to purchase a second or vacation home. A bargain cabin in the woods today might bring an excellent return when housing prices move upward. Affordable second-home prices also allow you to purchase a vacation home that can serve as a stepping-stone to a larger retreat in the future.

But appreciation isn’t the only advantage to buying a home. The federal government thinks home ownership is so important to the future of our country that it allows mortgage interest to remain the last substantial tax shelter for families. Owners can also take deductions on their property taxes. And, the profit on the sale of your home remains tax free as long s you buy a house for a greater or equal price.

So before you decide that this is not a good time to invest in residential property, re-examine the financial benefits of owning your own home and put them to work for you.

About the Author

Joaquin Fagundo is a part time real estate investor and operator of www.browsedaily.com a website devoted to new and experienced real estate investors.

Is Real Estate Investing still solid in todays market?

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

When the same local market is at the low end of the appreciation cycle, reaping a profit on the family home can take a good deal more time but the reward can be just as satisfying if price and location and carefully considered.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. According to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than, the rate of inflation. Housing prices actually rose an average of 10 percent during the recessions of the mid-1970’s and early 1980s.

CENTURY 21 statisticians report that the rate of home appreciation since 1990 has been around five percent nationally, with inflation hovering around four percent. Homeowners, obviously, are still staying ahead in the real estate game on average.

And, with mortgage interest rates the lowest they’ve been in two decades, real estate today is a more attractive investment than it’s been in years.

First-time buyers are the big winners in this environment. Drawing up a budget can help you and your family decide on what you can afford. Once you’ve determined a price and picked your desired community, shop around to find the best house you can buy for your money. This strategy can help you realize greater appreciation two or three years down the road.

This is also a good time to purchase a second or vacation home. A bargain cabin in the woods today might bring an excellent return when housing prices move upward. Affordable second-home prices also allow you to purchase a vacation home that can serve as a stepping-stone to a larger retreat in the future.

But appreciation isn’t the only advantage to buying a home. The federal government thinks home ownership is so important to the future of our country that it allows mortgage interest to remain the last substantial tax shelter for families. Owners can also take deductions on their property taxes. And, the profit on the sale of your home remains tax free as long s you buy a house for a greater or equal price.

So before you decide that this is not a good time to invest in residential property, re-examine the financial benefits of owning your own home and put them to work for you.

About the Author

Joaquin Fagundo is a part time real estate investor and operator of www.browsedaily.com a website devoted to new and experienced real estate investors.

Real Estate Investing: Mobile Homes

Real estate investing has many facets to it. It offers a multitude of ways to make reasonable profits. Your own creativity can contribute a lot to the profitability of your enterprise. One way to do this is by investing in a mobile home and locating it on the land that you own. Alternately, you may buy land with a mobile home on it. Mobile homes are located in parks and you can make a regular income by selling the mobile home while at the same time renting out the lot on which it is parked.

Advantages of Investing in Mobile Homes with Land; Combining the mobile home and the land into a package deal adds considerable value to the offering. Some other advantages are: This being a comparatively unique type of investing with fewer investors, you face less competition than does a real estate agent. Generally, you will be able to buy both the mobile home and the land for about the same amount as a mobile home on someone else?s land. As mobile home properties are much more affordable, their demand is inelastic and remains high even during bad economic times. This ensures that your returns keep coming in during downturns in the economy. Mobile home properties are less expensive to maintain and you may well be able to handle most routine maintenance jobs on your own, with substantial cost savings. It is also easier to upgrade these properties at a much lower cost than conventional fixed homes. Owning the land where the home is parked gives greater control and you do not have to put up with the whims of the property owner. You can select the tenants you want to sell the home to and how long they stay. This also ensures that the tenant cannot leave the premises until clearing his dues.

Economics of a Mobile Home Park; One unique advantage of investing in mobile homes on land is the option of being able to sell the mobile home and rent the land. It is possible to earn a return of over 25 percent of your investments in this business. Some other financial aspects are: The best option is to buy on cash and sell on terms. It is possible to arrange the finances from lenders, even if it means paying a higher interest rate on the borrowing. Higher earnings will compensate this. A promissory note, secured by a first lien in the home being acquired and guaranteeing payments will convince the lenders to part with their money. Providing seller financing will give greater returns than profit from sale of the property. The returns are increased proportionately if the park has many vacancies that can be rented out. An attractive and well-kept park will allow you to get higher rentals.

Many americans are opting to stay in mobile homes since the costs are lower as compared to fixed properties and the homes are getting improved. At the same time, the higher demand for such properties presents a lucrative business opportunity that you can well cash on.