Archive for March, 2012

Real Estate Investing Advice - Track Sales and Rental Trends

Here’s a good real estate investing tip. Sales trends and rental trends are leading indicators of rising or falling investment property prices.

It would be a good idea, therefore, to create a system for tracking and recording trend data such as the number of listings, new housing starts, selling prices, time on market, rent levels, and vacancy rates when you begin real estate investing.

You might be surprised. As you watch these sales and rental trends, you will be able to detect market changes as they occur and might make a profitable short-term gain.

Sales Trends

Watch for the time properties are sitting on the market. In slow markets, proper­ties can sit unsold for months, and the result could mean price decreases. Likewise, as the average time on the market falls, say, from 270 days to 180 days to 120 days, prices are about to go up.

Watch for the number of properties for sale. Real estate prices result from supply and demand. As the number of “for sale” properties increases, thereby inventory increases, and the result could mean sellers lower their prices to attract buyers. Similarly, a minimal number of “for sale” properties signal a lesser inventory and points the way to what could be rapid advances in property prices.

Rental Market Trends

Watch for and review these four important rental market trends for the past 12 to 24 months:

Okay, now ask yourself. Are vacancy rates falling or increasing? How long does it take to fill vacant apartments or rental houses? What types of units rent the quickest, i.e., one or two bedrooms, one or two baths, with or without covered parking or community center? How do vacancy rates differ among various neighborhoods and communities? Do some types of buildings or units enjoy waiting lists? If so, what are their features and locations?

What about rents, are rents steady or increasing? What about rent concessions, are property owners giving concessions to attract tenants, and if so, what are they giving away?

Watch for foreclosures in your area. Homeowners who lose their homes become renters, in turn causing a shortage of apartment units that results in increased rents; thus, higher property prices.

What about interest rates, bear in mind that low interest rates means that many tenants who are one pay check away from buying a home vacate the rentals, and vice versa. Of course, in our current economy, with lenders tightening their loan qualifications, this rise and fall in interest rates might be less telling. Nonetheless, interest rates should be monitored.

It’s all just a barometer. But it’s a smart real estate investing procedure to watch and record real estate sales and rental trends as an indicator or rental property prices. Whether you’re a rental property investor or current owner, understanding how sales and rental trends affect property prices and positioning yourself to react quickly can mean you score big.

Here’s to your real estate investing success.

Foreclosed Homes For Sale - Why You Want To Buy Now

The economy is sluggish and real estate prices are still dropping. Banks and financial lending institutions are still trying to recover from the market crash of the last few years. Most people are still afraid to purchase a home and the courageous few that do buy quickly learn that they have capitalized on a once in a lifetime real estate buying opportunity. Foreclosed homes are being sold for tens of thousands less than they were just this last year. That means big opportunities in store for the first time home buyer or people looking for a good investment.

According to The Wall Street Journal, some savvy investors have sold art collections and cars to invest in real estate, especially foreclosed homes for sale, which are being listed at record low prices.

During his very beginnings, Donald Trump would purchase foreclosed homes for sale such as apartment complexes and condos, which he rented out for a constant stream of revenue. The profit margin may be tight, but it was enough to have his money working for him. Once the timing was right, he was able to flip the properties for double what he paid for them.

Why You Should Buy A Foreclosed Home For Sale Today:

1. Listing prices are lower than they’ve ever been before. Right now you can get more property for your dollar.

2. Foreclosure rates are at a record high. Right now you have one of the largest selections of foreclosed homes for sale to choose from.

3. Interest rates are at record lows. Secure a low rate today and save money in the next few years.

4. The demand is rising. Many people are looking for a great deal on a home.

5. It’s very possible that we have hit the bottom of this real estate market decline. Which means that this opportunity may not be around for very long.

6. You have an unbelievable opportunity to buy low and sell high.

7. The incentives to buy today are increasing as time goes on.

If you’re in the market for a new home or a smart investment, it’s best to contact a highly experienced real estate agent who is familiar with foreclosed homes for sale. Make searching for a foreclosed home a breeze by looking through photos, digital video tours, property descriptions, and prices, to save you time touring only houses that have already caught your eye.