Investing: What’s Holding You Back?

 

It is never a bad time to start investing in real estate.  A common fear I hear from my clients, is “I a just so unsure of this market and I am afraid we have not bottomed out.”  My question to them is “Well, what kind of investments are you comfortable making”?  Generally, there is either a silence at the table or they say stocks and bonds.

 

Unlike investing in the stock market, real estate is a solid investment.  Investing in a piece of property can bring you long term gains as well as beefing up your portfolio.  Real estate may fluctuate as to its value, but it is a tangible item of ownership.  Stocks rise and fall daily as to their value, while real estate has a more constant value during ownership.   If purchased right and kept long enough real estate is generally not effected by yearly market trends.

 

Anyone can invest in real estate and there is no ideal market or time to invest.  In today’s market, with sellers becoming more realistic about prices, a savvy buyer can take advantage of the current decline in real estate values.  In booming markets, home prices may be higher, however you will have a higher chance of flipping the property.  When markets fall, you have the ability to negotiate with the seller, making it easier to hold onto the property for a longer amount of time.

 

All investors want to mitigate the risk in their investment.  The most effective way to mitigate your risk is to become educated in your local market. One easy way to understand local market trends is to contact a realtor who you feel comfortable working with and who also demonstrates a broad knowledge of their market.    Realtors can help you determine your target audience for the investment and target neighborhoods for smart investing.

 

I would like to give you an example of a great investment opportunity.  433 W Brevard Street in Tallahassee Florida is a currently occupied duplex built by Yellowhammer Construction in 2007.  The unit is currently leased and has been leased since the building was completed.  If you have the capital to invest, a property like this causes you no monthly out of pocket expenses.  The tenants are essentially covering your monthly mortgage payment and cash flowing enough to cover yearly property taxes.

 

If you would like any more information on investing or if you are interested in investing, please feel free to contact me at any time.

 

Until next time….

 

~Sarah

 

Sarah W. Deeb

Buyers Specialist

Keller Williams Town & Country

Sarah@RingTheRivers.com

 

Source:

http://reiclub.com/articles/investing-changing-market

http://yellowhammer.com