After a long phase of little or no growth of the housing sector for the past several years, it gained moderate momentum in 2012. Experts believe that real estate has finally hit recovery phase and growth of the sector will continue for the rest of 2013 which makes the housing sector favorable for investment in the coming months. However because of the prolonged downfall of the property sector since 2006, many are yet skeptic about its growth and doubtful about investing back. Here in this article we will provide you with expert tips and advice following which you can make your real estate investment a profitable endeavor in 2013. But before investing in real estate you need to clear your perspective and enlighten yourself about the current development of the real estate market since it is difficult to pursue investment successfully with suspicion and requires a good amount of confidence and sureness.
One of the indicators that makes the recovery and growth of the real estate rector apparent is the recent increase in property and home prices. In fact property prices climbed more than expected in October 2012 indicating a rebounding housing market. As per popular index S&P Chase-Shiller that keeps track of property values in major cities recorded a considerable growth of 4.3% in 2011 and 5% in 2012. With reduced mortgage rates made available by the federal government property sales will most probably incline in 2013 as well and prices will rise further. Thus with the increasing property prices, 2013 is favorable for property investment and by buying property now investors can earn more from it in the future. Given below are some instructions following which you can make successful real estate investment in 2013.
Preplanning: Real estate investment is a long term approach and hence it requires a good deal of preplanning before actual execution. As an investor you must first make arrangements in making estimates, scheduling your work, and gathering all possible resources before buying real estate property.
Seek Help from Local Investors: Reach out to other local real estate investors as success in property requires a good amount of healthy networking. Networking among real estate investors is a give and take relationship and both parties are mutually benefitted. As an investor you won’t be aware of the whole housing market but through networking you will have access to a good amount of valuable information pertaining to real estate and you will have to provide some back in return.
Management: Real estate investment becomes better and lucrative if it is managed properly. Proper management of real estate property involves periodic physical maintenance of the property, payment of taxes and allied bills, collection of rent, completion of legal procedures, etc. Housing investment can be messy if it is not managed properly and therefore you must appoint a real estate manager or an accountant especially when you have invested in a large number of properties.
Diversify your investment: Real estate prices and values vary from region to region because of varying consumer demand. Moreover downfall of the real estate market can be regional too and when one geographic location is under recession, prices may still go up in another location. Therefore considering the fickle market and erratic economy it is wise to diversify the real estate investment over a larger horizon.
Avoid House Skipping: Investors who participated in short term real estate investment faced great losses than those who practiced long term investment in the past few years. In short term investment investors buy property and sell them back within a short period of time and the procedure is also termed a house skipping. In the recent past property prices declined significantly and therefore those who practiced house flipping incurred losses on their investment. Hence the current property market is suitable for long term investment and you must buy and put the property on lease rather than selling it back unless you get a satisfactory deal.
Make Use of the Internet: You can collect a lot of information on the property market and get updates on the current property investment news by logging online. There are several websites where you can find valuable tips and guidelines on property investment and get better deals on property through online advertisements.
Have proper backup: Risk management is crucial when it comes to property investment and considering the present market and economy you must design a proper backup strategy that will help you during uncertain and difficult times. Make sure that you don’t invest your entire wealth in property and keep something back in reserve. Additionally you can invest in other sectors as well such that you can have good backing whenever the property market starts declining.