Investing In Real Estate

Investing in real estate is an exciting and a frustrating roller coaster ride.  If you do not have the stomach for going through the ups and downs, then this may not be the right type of investment for your money and time.  But if you enjoy the thrill of the ride and have the nerves of steel required for this type of investment plane, then real estate is for you.  If you like what you are reading then please continue on through the post.  And I welcome dialog if you disagree or have a comment. So let’s talk about buying a home.

Buy low and sell high.  Why would anyone plan on buying real estate at an overpriced value knowing that the investment is only going to lose value year-after-year.  It is much like buying a car.  A car can never be considered an investment.  The value of the car will go down year after year and the money will never be recouped.  But real estate has been a proven investment that can and will increase in value as time goes on.  And as soon as the mortgage crisis has run its course, real estate value will begin the recovery process and grow once again.  And with homes being underpriced, this is the best time to make a home purchase.

When deciding on what type of real estate to buy, consider the type of life that you like to live.  If you like the idea of living in the country with horses, then a country farm with stables would be ideal. If you like the idea of living in the big city, then by all means make it a reality.  When it comes to buying real estate, you should treat the purchase as if there is a possibility that you may need to live there.  In hard times such as these, many real estate investors are in this situation. 

Be patient if you have problems finding the right home or property to fit your needs.  Hunting for a new home is a process that takes time and dedication.  You know what you want in a home.  If you settle now for something less, you may find yourself resenting your choice in the long run. Eventually, you will find the home that you are looking for.

When you find your home, make sure you do your home work to make sure that everything dealing with the home and the property are in order. Ask many questions.  How old is the roof?  How old is the furnace? Have there been any past problems with termites?  What every you think needs to be ask, make sure you inquire. There are no dumb questions.  And the seller is required to inform you if there are any issues that may need your attention.  And the problems that do come to light may even help you get the home cheaper if you are willing to deal with fixing the problems. Or even better, the owner would have to fix it at no cost to you.

Do not make an offer on the first home you see.  There are tons of homes in the market right now and you need to be able to compare the different homes in style and price. I suggest looking at more than 190 homes before making a decision.  But remember that you are looking for your dream home.  If the dream home is not available, then continue looking.

Make sure you have your financing in order. Get yourself pre-qualified prior to contacting a real estate agent to start your search. They are not going to want to work with anyone who is not pre-qualified.  And getting pre-qualified will help you understand how much home you can buy.