Is this a good time to invest in Real Estate?
Well we certainly live in more uncertain times than before, but even in more stable times, no one knows for sure what the market is going to do. Trying to time the market perfectly usually doesn’t work out. The fact is that interest rates are at all-time lows and real estate has always been a good long term investment, so while it might make sense to be a little more conservative in analyzing a property, it is still a good time to invest.
What makes a property a good investment?
Simply put, there are many different factors that could make a property a good investment. The biggest factor for all types of investments is return on investment (ROI) or how much money it will make you. Being able to accurately calculate a property’s ROI, or its capitalization rate for multi-family or commercial real estate, is a big step in deciding if a property is a good investment. Your Realtor should be able to help you with calculating these equations and analyzing the results for the area of the investment.
How can I learn more about Real Estate Investing?
There are many books and websites dedicating to real estate investing. Some of them are great, others are not. Biggerpockets.com is a favorite of mine for information or investing in all things real estate. But, the best way to learn is to find someone who is doing it successfully, buy them a beer and ask questions….pay attention! Finding out habits and strategies of successful people and doing them is never a bad choice!
How long does it take to get a return on an investment?
As with most things in real estate, it depends! For the ore common types of investments, like buying and holding rental properties, it is almost always a great long term investment. As for fixing and flipping properties, they can be more of a short term investment that can range anywhere from 2-6 months or more, depending on the nature of work being done, to see a return on investment.