You may be interested in buying an investment property if you want to diversify your holdings beyond stocks and bonds, there are plenty of places where housing should be a pretty safe bet. There are many different ways to invest in real estate. Investment in properties in United States can be profitable if you understand real estate investments. The key is to buy in cities with strong job growth that people are moving to, so that the stock of potential tenants for would-be landlords is abundant.
Also as with any investment, it all depends on you, your financial situation, access to financing and risk level. Before investing in real estate, be prepared to undertake extensive background research on the property, and the market in general. Legal work to check for any issues relating to the property is also wise. If you are buying a house as an investment, be sure to get a home inspection.
Recent surveys show house prices aren’t rising as fast as they were. The annual increase of 4.26% y-o-y in the first quarter 2015 in the S&P/Case-Shiller seasonally-adjusted national home price index (4.34% in real terms) was the lowest since Q3 2012. There was a 4.39% price rise during the year to May 2015 (4.43% in real terms).
If you are going to purchase property to rent, do your homework.
- Look for deals where you can buy below market price.
- Buying single family dwellings is good but luxury homes may hold the key.
- Turnkey properties can provide you with instant returns, but they are not quite as lucrative and a little expensive as well.
- Purchase an investment property in a cost-effective manner