Real Estate

Three Ways to Spot a Good Real Estate Investment

Real estate investing has been with us for a long time, but according to Forbes magazine, aside from tech wizards like Bill Gates, more people like Donald Trump have made more money on land than in any other area of ​​business. Real estate has this endearing property that makes people willing to die to protect their territory and every day there are new immigrants in America and this represents a greater need for housing and a greater demand for real estate.

Most people say they missed the last housing boom or that the current housing bubble is going to burst. This article will address three ways to spot a good real estate investment to make more money in real estate.

Trend #1- Migration

Interstate migration and cross-border migration represent a key indicator of the growing demand for real estate in a particular area. Spend some time looking at the map of your district and determine where people are migrating to. Often people migrate to where the industrial development is. Therefore, new factories being built in some remote part of the city that has good road connectivity and access to public services generally means increased opportunities for you to get investment property that should go up in price. Keep in mind that the particular type of real estate will also depend on the type of people migrating to the city, as different people like to stay in different types of housing.

Trend #2: Demographics

Older people tend to choose different homes than a young couple, for example, so examining the demographics of the district you’re considering investing in can also play a key role. Have you ever wondered why some places have more young people than other areas? Spend some time looking around the neighborhood and you will understand more about the people that make up the surrounding neighborhood and better understand how you can make money from it, such as what type of property to buy, whether to remodel or completely rebuild it. and resell. So if you spend some time talking to the real estate agents in your area and the residents and neighbors to learn more about the place, it will be well worth it.

Trend #3- University Effect

Real estate investing gurus will tell you that you need to look for places where you expect above-average returns for above-average rental returns on your real estate investments. In this sense, college towns represent places where rental yields would be higher than average. The reason for this is that you have students from abroad and from other states who have to stay close to campus. They have money to spend on rent and have no possible alternative accommodation. So you have a ready stream of prospective tenants. Keep in mind that you either have to stay close to the property to collect rent or you have to hire a good management company to watch over your property for you.

In conclusion, real estate investing is a very interesting field to look at. Don’t let people shake your faith in your own abilities to invest in real estate. Take the first step in real estate investing and you’ll start earning more money and monthly cash flow than you ever imagined possible from your real estate investments.

By Joel Teo 2006 All rights reserved