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Real Estate Investment Strategies
By admin | January 22, 2010
Before we learn about the strategies, it will be better to know the real meaning of real estate. In other words, what is the acceptable definition of real estate?
The term ‘Real estate’ is commonly used in both the devoted and developing countries. It is widely used in the US, Canada and Britain. Real estate refers to a land along with something that is permanently fixed on it — housing apartments, commercial complexes etc. it is also known as ‘Real property’ or ‘Realty’. In legal parlance, the term ‘real estate’ connotes land with fixtures and is different from the word ‘Real property’ that signify ownership rights of the land.
Remember that the investment strategies can differ a little depending on the specific location and context. So it is necessary to use discretion and decide the right time to invest in real estate.
1. Buy land and erect homes: Depending on your financial condition, you can opt to buy a large piece of land first. Then make different sections to erect one or two homes. You can also sell one of the homes for a higher amount so as make profit from the investment made till that period.
2. Buy land and build a ready home: If you buy a large piece of land, then think of making a fully furnished home on it. It can fetch a higher price on the investment you have made. However, the profit will depend on the specific region and the current market price.
3. Buy pre-foreclosure real estate: You can opt to buy real estate from its owner who has defaulted on payments and the foreclosure formalities have started.
4. Buy post-foreclosure real estate: In case you have huge money to invest, you can buy foreclosed real estate and owned by banks.
5. Buy first stage home(s): You can plan to invest and buy home(s) when a new housing scheme comes up. You need to be discreet in this because some builders impose time restrictions on its resale.
6. Buy and hold strategy: In case you have the inclination to make huge investments and wait for ROI (return on investments), this can be good strategy. You can buy more units and hold them till the right time for resale. However, you need to work out your budget with regard to holding costs, usual taxes, maintenance etc.
Real estate investment requires constant vigil with regard to the geographic location and the price fluctuation. If you can judge this well, it can be the right time to make investment.
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Category: Home Buying, Real Estate Investment | 4 Comments »
January 22nd, 2010 at 11:54 pm
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