When making an investment in real estate, it is important to highlight some aspects that differentiate it from other investment alternatives, like financial sector, shares, other capital market products or acquiring companies, among others.
Investment in real estate is usually a medium or long-term process. Profitability has two ingredients: the appreciation and income from annual net income. This profitability depends on the type of property, its location, ease of lease and the possibility of generating positive net income. The risk associated with the real estate investment is very low, given that the prices of it across the globe have a positive trend in real terms.
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For proper investment, one should have an adequate knowledge of the market, with professional advice from experts in the field who can define the best time and the best location to carry out the investment.
For many years, the governments have been implementing other investment figures related to real estate, which are representatives of the real property, as is the case of securitization, real estate investment trusts, and real estate assets, among others.
Factors influencing the real estate transactions
Real Estate Investment depends on a number of factors, which are global economic environment, current interest rates, industry growth projections, prices, profitability, and risk and existing investment alternatives in the market. In recent years, there have been changes in selling prices because of a combination of factors that include the dynamics of demand, construction costs, land prices, changes in requirements and specifications of construction among others.
Real Estate Investment trends in 2013
Here are some of the tips, which can be helpful to determine real estate investment for the current fiscal year!
Follow the “foreclosure” and “short sales: For many, the economic crisis is not over, and yet in 2013 we will see the consequences and even families losing their homes. This means that these homes in “short sale” and foreclosure will remain part of the inventory available to sell.
Home prices continue to rise: There has been a sustained increase in the housing prices. Nothing indicates that in 2013, the prices will go down, and if we are carried away by these results, we continue to see higher prices than in previous years.
Continued increasing interest in rents: Persons left homeless due to the crisis have become tenants that add to the demand that has always existed for rent. As with everything, the more demand, higher the rental values, so there are those who have invested in rental properties will benefit most. Buyers can also seek benefits from the resale homes.
Homes will be technological: The modern buyers look out for the properties, which include attractive elements that save electricity and will make life more comfortable. Not everything translates into higher cost because consumers are also more aware of their expenditure and wise use of money. Therefore, we can conclude that the buyers want more, but at reduced costs!
The real estate market will continue its recovery. This does not mean that it is fully recovered, but it is not expected to reverse again. According to industry analysts, the worst is over and the road to recovery has been slow but steady pace will.
Consumers have more confidence in investing. The stable market attracts more buyers. Of course, keep in mind that it is time to see immediate gains, patience is the key, when you try to see the return on your investment. Also if you want to make flexibility in your credit, must consider Creadiful that will ease out for you.
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