Buying a real estate investment property is a major decision, and likely represents a lot of time and energy on your part coming up with the funding, finding the right property, and doing your due diligence. For this reason, you deserve for each investment to be as profitable as you can make it.
I’d like to address a few ways that knowing and understanding the housing trends in the real estate market you invest in can help you to double your profits safely and easily.
The first thing I’d like to address is…why are you buying property where you live? There are hundreds of real estate markets around the country and you happen to live in one of them. Instead of taking what is dealt to you where you live, why not seek out the locations where prices are far more likely to increase and add to your bottom line?
After all, values may be down in your area, and are not set to rise again for another 5-7 years or more. Some locations, such as Detroit, Michigan, have been depressed for 20 years or more. If you lived there, would you sit on your hands and do nothing for a quarter of your life, or would you find a better place to invest?
I’m willing to guess that you are afraid to buy property far from where you live because you cannot manage it personally and you’re afraid that if you can’t see it, something awful will happen. I can promise you, after 5 years of buying properties in multiple states and in several market cycles, that there is no more risk buying out of state than there is in your town, if done correctly.
After all, there are contractors, real estate agents, and property managers in other locations as well, and I wouldn’t recommend doing their job for them even if you were investing in your backyard.
For these reasons, I strongly recommend researching the housing trends in a variety of metropolitan areas in the country, and investing in the markets that are likely to go up very soon.