Investing in real estate rentals can be a great choice if you find the right real estate properties. Since the housing crisis, it has become more difficult to flip homes and it makes more sense to hold onto the right properties. Then, you may be able to sell the property at a later date for a higher price. You may also be able to generate a profit by renting out your property until it is at a price where you feel that it is the best time to sell it.
Look for Undervalued Homes
Many homes are undervalued because of the recession. You can determine which homes are a great choice by looking at the Local Market Monitor and then looking at the asking price for the home.
Look for Rising Populations
Choose a property that is in an area that is experiencing a lot of population growth. These are usually cities where there are growing economic opportunities, such as cities that have recently begun drilling for oil.
Avoid Real Estate Near High-Trafficked Areas
While growth is usually beneficial, consider the type of growth as well. For example, if most of the growth will be industrial or commercial and the growth is too close to the property, the higher traffic may reduce the number of buyers. Also, property near train tracks or airports may also be less in-demand.
Look for Low-Maintenance Properties
If you are concerned about how much work it will take to care for your real estate property, there are two factors you should consider: the climate and how much the property will be used. Vacation properties will not be used as often, so they may require less maintenance. Properties in locations with mild weather also require less labor. For example, windier areas may require more roof maintenance. Also, consider whether termites are a regional problem and whether the real estate is prone to flooding.
Do not simply look for properties in the United States. There are many parts of the world with rising populations and increasing job opportunities. For example, many are moving into the middle class in Brazil and have accumulated enough of a disposable income that they can become consumers and begin purchasing homes.
The revenue you generate from international real estate will be in a different currency, which allows you to diversify your portfolio. You may even put real estate to your own use by spending some time living in a foreign country. For more information, contact an agency like Felte Real Estate.