Thursday, October 23, 2008

Is that good time to invest in real estate?


"Be fearful when others are greedy and greedy when others are fearful…Warren Buffet"
**Real estate investing is not easy, but it is simple. Anyone can do it. But not everyone will succeed. The reasons why many people fail. It’s not because of the real estate itself. It’s because something is missing in the rules to follow before taking decision to buy or sell or invest in real estate. Here are some points to consider if you are debating shopping for a property to own and invest:
* Let your project be in your Major Plan for your life goals. It is a formal contract between "the visionary" you and the "daily working" you and let it be exactly what must be done to achieve all your major objectives.
* You will avoid making decisions based on fear, greed, and hope.
* As real estate prices fall, the income you get per dollar invested rises. This means greater cash flow and the ability to deliver bigger dividends to your investors.
* When the market is down. When the real estate prices fall down, There are people selling properties that have to sell, forced by the bad economy and the falling of their financial plan. If you invest now venture out and strike a deal after making careful decisions based on your situation and the area you need to invest in .Slow down and study all details but don’t end up without buying or selling if something meet the criteria of you major plan.
* You are making an investment only if there is a reasonable probability that you will be able to make money when you sell. Buy every property with that in mind.
*In good economy people like to change their old house and buy a new one. Sell the current one first then buy the new one. The economy can change and you will not be able to sell this additional house.
* Be sure to use those formulas in your search and study. Capitalization Rate , Net Operating Income , Gross Rent Multiplier. Scheduled Gross Income, Effective Gross Income, Performa and current.
* Investing in real estate as is buying into an investment that "pays for itself" and because pieces of his investment are returned sooner and the expectation of additional gains through amortization in real estate investment. Don’t keep a property with no hope to do some or little money.

* Put your financial situation first when you want to invest. Look at the potential real estate purchase or sale, check it against your goals and your major plan, and make your decision based on whether it moves you closer or further away from your goals.

No comments: