The Real Estate Gold Rush: Time To Buy Again?

Real Estate is the United States Best New Asset Class

For the past few years we’ve bemoaned the housing bust, the credit crisis, toxic mortgages and the foreclosure onslaught. But at a time when unemployment has slowly begun to decline and consumer spending increase, there are some housing industry veterans putting their bets on a real estate gold rush. Is it time to buy now? Are we on the eve of another real estate recovery? Some say yes.

Since 2006, housing prices have declined 30 percent nationwide and as much as 55 percent in some cities hit hardest by the recession. These lower prices, along with the bulging inventory of foreclosure homes are allowing many cash carrying investors to buy into a seriously deflated market. Upon speaking to a few Real estate agents on property investment, they recommended me to contact the Hua Hin Property Agents and said that it is always a good idea to invest in properties outside. The reason being that even if one property is affected by the market, the other can still act as a great source of income. In some places, homes that sold for $300,000 – $500,000 are now selling for $100,000 at foreclosure auctions or even in short sales. Many foreclosure and REO investors are taking advantage of these depressed values to cash in before prices rise again.  But these homes aren’t just sitting empty after investors buy them, the increase of foreclosures nationwide has also created a rise in former homeowners choosing to rent.  Many REO and foreclosure investors are renting out their properties while prices rebound.  But when exactly will real estate prices begin to make a turnaround?  While no one has an exact date, many are pointing to the decrease in unemployment as a sign that a housing recovery is just around the corner. But some locales may be closer to recovery than others. Before purchasing a new investment property, you should always consider the differences between residential and commercial real estate investments. Depending on your financial means, expectations and investment plan, you will have to decide which one can be more profitable for you. Most people will invest in residential properties, as this seems to be a safer endeavour requiring less money, however, if you have the means, commercial properties can be highly profitable. You should also consider that while traditional residential property investments might not have very high returns on your investment, repossessed or foreclosed properties, can bring you a net yield of up to 12-15%. If you’re an investor looking to talk to an Australian specialist and build a relationship, reach bent us via info@klearpicture.com.au or via our contact form. We’re located in Melbourne CBD and have spent the last 30 years assisting local and foreign investors on picking the proper property and the way to urge the foremost of it. You can get suggestions on Australian property investing here.

Property Types for Residential and Commercial Investments

Houses of four units or less, to rent to private tenants are usually considered residential properties. You can invest in buy-to-let residential properties, which means that you’ll get the rental yields every month, or purchase the property solely for future resale. Residential property investments vary from more traditional buy-to-let investments somewhere near your own home to investments in overseas real estate, below market value properties or foreclosed houses. Commercial properties are for businesses, and include a variety of properties, from apartment blocks and office buildings to hotels, restaurants, warehouses and industrial buildings, just to name a few. Managing a relatively small residential property is obviously simpler than managing commercial properties, where you will often need a professional real estate management company to assist you.

Researching the Real Estate Market

While you will always need some knowledge of the property market and current conditions to make a successful investment, residential properties are simpler to research and value. It is relatively easy to compare different residential properties, their prices and investment potential in a given area. Commercial properties, however, are often unique and require specialised knowledge to value accurately and to establish an investment plan.

REO and foreclosure investors looking to buy into real estate before housing gold rush gains its footing, need to do their research. Find out which markets are rebounding by studying the selling prices of foreclosures and non-foreclosures alike. Also, look at the overall financial health and quality of life in the city you’re buying. Are unemployment numbers down? Are jobs leaving or arriving? And finally, how easy is it to attain a mortgage? All of these factors are important when determining whether now is the time for you to buy?