If you have a lot of spare cash lying around, you’re almost certainly looking for the best investment opportunities. Putting your money in property could be the best thing you ever do, and there are a number of reasons for that. Anyone who is less than convinced about the benefits should read the information listed below. Each bullet point details yet another good reason you should make the investment.

• 64% of Americans own their home. That means 36% of them don’t, and so they are forced to rent from private landlords. You could make a fortune by providing properties to that portion of the population.

• 1.2 million people bought brand new houses in 2014. That shows that the housing market is in full swing, even though the economy is still recovering. With such a thriving market, you can rest assured that you will not pay over the odds for the investment.

• The average price of new homes is $292.2k. So, you are going to need a significant amount if you want to purchase something off plan. However, most landlords start out with something less expensive.

• The most expensive place to live in the entire country is New York City. Buying property there will mean you make huge profits when renting them out. Just be aware that purchase prices are also very high.

In answering the question posed in the title of this post, you should buy property because there is money to be made. Just make sure you research thoroughly and refrain from rushing into anything.

When Should You Invest in Real Estate?

Investing in real estate entails a certain degree of risk. The first rule in investing, whether it is in real estate or any other avenue, is that you have to know what you are doing. Real estate is one of the best investment vehicles out there but you have to be careful. There are many shady individuals who are only out to get your money. If you are not vigilant you could get burned. Now the question is, when should you invest in real estate?

When the timing is right?

Investing in real estate is all about timing. When the market is down, buy. When it’s up, sell. It’s actually simple logic. And yet people do the opposite. They sell when the market is down and buy when it’s up. People often get scared of recessions. But the rich know that this is where you can make money. The economy won’t stay in a certain condition forever. After the recession, economic boom will follow. Accumulate as many good properties as you can so that when the market bounces back up, you’re in for a windfall.

When you’ve found a good deal

Good deals are hard to find – but they are there. You just have to keep on looking and looking until you find them. Don’t invest in real estate just for the sake of investing. You have to make sure that you are getting a good deal or else you may just lose your hard earned money. Do your homework so that you’ll reap a rich reward for your efforts. When it comes to finding a good deal, there are many elements you should put into consideration. The price, condition of the property and location are just a few things you should think of. One tip to getting a good deal is to find a motivated seller – someone who wants to sell his or her property fast.

When you have the right financing

Even if you don’t have money you can still buy property. How? By using other people’s money! You can find investors. You can go to the bank and get a loan. What is important is that you have the money lined up already so that when you find that deal that’s going to make you millions, you can grab it.

When you know what to do with the property

There are people who just buy and buy without a thought as to what they really want. In investing, you have to have a plan. Failure to plan is planning to fail. What is your purpose for buying property? Are you planning to use it or lease it out? Do you want a residential or commercial property? These are only a few of the questions you should ask before buying a property.

There are many things you should consider before investing into real estate. But the most important is that you should know what you are doing. If you do, you will be able to worm your way out of any situation.

How You Can Make The Most From Real Estate Investment

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.