Getting Started on Real Estate Investing

Looking for a new financial opportunity ? Investing in stocks, bonds, and mutual funds are great ways to make money for the young investor. However, real estate investing has a particular advantage over these traditional investments practices. Why? Investing in real estate grants you, the investor a degree of autonomy that is simply not possible with stocks, bonds, and mutuals funds. Sure, you may be able to control in which stocks you put your money in, but you simply cannot control the volatility of an unpredictable stock market.

Investing in real estate is more than a one-and-done investment, but works instead like a business. According to Donovan Ryckis, advisor at J Donovan Financial: “It will require time, management, and due diligence above and beyond most investments.” On the plus side, you have almost complete power over decisions related to the property. In a way, you become your own CEO, even if you’re only managing one property. So how do you start investing in real estate successfully? Check out these great tips from Jeff Brown of US News and World Report.

Buying A Vacation Property

Buying a vacation property is only suggested if you intend to use your vacation property. You can rent out the property for short-term renters while you’re not using it for your own personal luxury. You will want to find a property that is affordable, but that is still close to the main attractions and town-centers. Just remember that vacation home markets are susceptible to volatile markets unlike other forms of rental properties. When the economy is in a slump, luxuries like vacation homes take a toll.

Buy a Full-Time Rental

Renting a home or a property is one of the oldest forms of producing an alternative income. You can either buy a home or a condo and choose to rent it out, or rent out your current home or property. Many people decide to convert their homes into, two family homes in order to collect rent while maintaining their living space. It’s a stable form of making money and should be considered. Just watch out for bad renters.

Flipping a House

Unlike in reality shows, flipping a home is very difficult. The process will most likely take a few months as well as decent sums of money. You will need knowledge of how homes are built, and expertise on how to make the changes you want. Brown’s article suggests staying away from this step if you are neither patient, nor construction savvy.

Investing in your Own Home

Investing in your own home means adding new value to your home. Certain remodeling and renovation projects can add a great deal of value to your home. Things like a kitchen remodeling, adding a patio or a deck, or renovating your basement can add extra value to your home. Not to mention, you can also enjoy the immediate benefits of doing so as the homeowner. Once you sell, your home’s overall price should appreciate.

Buy into Real Estate Investment Trusts

REITs act much in the same way that mutual funds do, however in terms of real estate instead of stocks and bonds. Certain REITs specialize in certain property types such as residential or commercial, so make sure you know which ones are best for you. REITs also spread risk among many different properties, and are professionally managed by experts in the field.

 

World Economy 2016

With 2015 concluding last week, it gives us the opportunity to make resolutions for the year ahead. But what will be some resolutions for the global economy in 2016 ? The global economy can also have significant impact on the real estate market as well. The reason is because if the economy is not performing well it could lead to people not looking to buy houses or having people not being able to pay mortgages.  It is too early to tell on how much of an effect it will have and we may not have the answers for awhile, but here are some ideas on what to expect in from world economy in 2016.

The United States and China are two of the largest most important economies in the world and how the two economies perform have a drastic effect on everyone else.  For the U.S, the Federal Reserve has raised interests rates for time since 2006, which is huge deal. This can obviously cause much of a concern for economies that have started to be on the rise .  According to bbc.com the change in the United States interest rate will  “likely to lead to higher borrowing costs, and lower currencies, because money will be moved to the US to benefit from the rising interest rates there”  However, so far there has been nothing to worry about in the financial world since this has occured, but you never know what could happen down the line.  

China, is another prolific economy and they have encountered some negative economic growth recently. However, due to  the slow economic growth there has not been a sufficient crisis that anyone has to be concerned about, but  it is still nothing to brush away.  The decline in manufacturing was seen to be as an issue for China and the with this type of decline it has had a major impact on global commodity prices such as oil, metals and food.

Oil has been yet another concern for the economy. The price of oil is not as expensive as it was a year ago, but many consumers feel they are not seeing the full benefit of it. Professor Kenneth Rogoff, a former IMF chief economist said that people in some countries are using oil “as an opportunity to cut subsidies rather than allowing consumers to get the full benefit”.


For more information, check out: http://www.bbc.com/news/business-35191325