Property, Real Estate and Land Investments

PROPERTY and LAND: Top Tips On How To Invest On Property and Land

Predictions concerning the real estate market can be sketchy, at best. When the world economy took a down turn (read: crashed) some investors viewed dropping house prices as a death knell for the housing market. This however, is only when viewed from the peak of the housing and land market.

During the age of property flippers and sketchy house loans, the prices on property did skyrocket. After the crash, the property pendulum swung in the other direction. Property and land investment have apparen’tly, begun to stabilize, making investors once again, consider plunging their stake into real estate. Here are some ideas on good, solid moves when purchasing land.

Signs To Watch For

One of the strongest signs of a strong residential industry is the number of contracts issued for new homes. Most individuals and corporations these days won’t take out a loan if they aren’t pretty sure they can maintain payments. Not only that, the lending industry took a major hit with the recession, and they are much more careful about to whom they lend money. Sub-prime loans don’t exist anymore, so if someone gets a loan for a house, they probably can afford it. If new construction loans are up, so is the opportunity for investment.

Find out the number of sales of current homes. If residences currently on the market are selling, it might be a good time to start investing in property.

Closer to Home

Perhaps you’re not considering large scale investment at this time. You’re just trying to decide if you should buy a house instead of renting. If you have been able to keep up your rent payments, then you can make house payments of the same amount. With rent rates going up in several major cities in Australia, you may find yourself paying as much for rent as you would on a house payment.

Next, consider your near future. If you’re planning on staying where you are for the next 5 or 6 years, you might benefit by purchasing a house. That way, your rent payments become equity, instead of paid and gone!

Now, look at the housing market, and start saving for a down payment. It’s beginning to look like the proverbial buyer’s market. That means the selections outnumber the buyers, giving buyers the upper hand. While home loans can be financed at 90% if you have a good credit history, your total loan amount can be significan’tly reduced with a substantial down payment.

DIY Renovation

If you plan to renovate, keep in mind codes and permits. It’s much cheaper to renovate correctly the first time, than to have to tear it down and rebuild it correctly. Also, be honest with yourself. If you are unskilled or physically unable, you’re not going to make, or save, any money.

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