Where should you invest your real estate money?
When it comes to choosing a real estate investment , it can be difficult to figure out which type of investment is best . Should you invest in apartment buildings , single family houses, or condos ? The answer depends on your local real estate market as well as your personal investment strategy . But no matter which type of investment you choose, there is one thing that is clear . In today’s real estate market, you can save a great deal of money–and make a great deal of it–by investing in foreclosures.
For example, let’s look at Real Estate in Portland Oregon. According to RealtyTrac, the average sales price for real estate in Multnomah County was $294,917 in September 2010. Contrast that with an average sale price of $178,470 for foreclosure properties, and you can see that there is a huge potential to increase your earnings on your real estate ventures by purchasing foreclosure properties.
Check out these Portland Listings.
When purchasing a property foreclosure property, you will probably need to make more repairs than you would if you were buying another property. People who are losing their homes to foreclosure don’t take the time to make their houses look top notch for prospective buyers, and banks don’t repair existing problems before putting these homes on the market as REO properties. However, in the example above, there is an average price difference of $116,447 between foreclosure and non-foreclosure sale prices. Even homes in very bad condition usually don’t require more than $30,000 in repairs to be put into sell-able condition, so you are looking at a big return .
To determine which form of property to invest in, you’ll need to do some investigation in your target market place. If there is a large demand in the rental market for condos and you are able to buy them cheaply, either as foreclosures or not, you might find this to be an ideal investment vehicle. However, the demand for different types of properties can vary greatly from one area to another, so you need to look at your local market. One way to do this is to pay attention to the ads you see in the newspaper. If you see the same ad for several weeks, that property is not renting for some reason. It could be that there is something wrong with the property itself. However, if you notice that there are several similar rentals that are not being filled quickly, that could indicate a trend in your market. Once you have determined the best type of property to invest in for your area, take a look at the foreclosure listings to find the best deals.
Find great Portland Condos here.
Posted by Carlos Sagastume on November 22, 2010. Filed under HUD Homes.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
Recent Comments