•
classic properties international
•
Vacation at Home One significant factor that has a positive bent toward investment in residential rental properties is the decline in international travel. Whether concerns are for safety or increased costs because of our dollar, many consumers are looking locally for a vacation spot. Families living in all four corners of the country are attracted to the idea of the privacy of renting a home for an extended period. Having access to a large private residence in a desirable location provides opportunities for all ages and stages. Even though rental costs can be substantial, the cost of flying internationally plus the low exchange rate for the dollar makes vacationing “at home” an increasingly attractive option. Be Aware In spite of the many positives that might encourage residential real estate investment, investors should be careful, as with any investment, to learn the ins and outs of the market. While it seems obvious that the goal is to buy low and sell high, or buy at low rates so rental indexes will ensure profits regardless of inflation, achieving that goal has some caveats. Studying your potential investment market through extensive comparisons of like, or at least similar, properties will help determine the properties that are undervalued. Noting that a property has been on the market for an extended period may signal a motivated seller, and that price is more negotiable.
If you are investing for resale or for long-term rental, buying near shopping centers, job opportunities and quality schools can significantly increase the desirability of the property. Visiting with area Realtors can help glean information about the true desirability of the neighborhood. The one singular issue that seems to remain in cement with regard to buying, selling or renting residential real estate is “location, location, location.” The ultimate demonstration of that is the fact that many buyers and renters will choose a lesser residence if it is in the “right” neighborhood - highly acclaimed school districts, parks, near shopping, etc. Whether purchasing for rental or resale, consider factors like surrounding properties, zoning regulations and any potential construction that may affect the area. When purchasing a rental, consider the cost of necessary repairs, the advisability and cost of upgrades, and most of all, the cost of maintaining the property. Real estate investment, even with its ups and downs, seems to be a perennial favorite for investors. It appears that the ever-hopeful and ever-entrepreneurial American spirit wants to reinforce Scarlett O’Hara’s obsession with Tara and its land. Since approximately 41 percent of real estate professionals own investment properties for rental purpose – an instance of practicing what they preach – it seems to be an innate characteristic of American Dreamers to love owning land, and be ever on the search for more of it, plus the good investment options surrounding it.
*Financial Web Newsletter, December 28, 2009
This article was submitted by Cornerstone Mortgage Company, a fullservice mortgage banker operating more than 40 offices in Texas, Georgia, Minnesota, Oklahoma, Mississippi, Nevada, North Carolina, Utah and Washington. Corporate Office/Houston, 713-621-4663, 1177 West Loop South, Suite 200, Houston, Texas 77027. 5