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Health & Fitness

It's Still a Buyers' Market for Real Estate out there

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification. Real estate, even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.

In fact, that very downturn has created a historic buying opportunity for potential home buyers and investors alike. The combination of lower home prices across American and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors or folks not ready to take the next steps in life, downsizing, this can make the difference in achieving affordability. Positive cash flow for renting these properties sooner can help make this the right time. Buy your retirement home now; use it as an investment until you are ready to make the big move.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles, learn all you can before committing your cash. You should have more than a fundamental understanding of real estate and the real estate market. For example, be aware that, in general, investment properties are not liquid investments.

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· Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to repairs or vacancies.
· Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.
 · Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.
· Research the property. The most common way to lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for the area or developing vacant land. Ask a local real estate professional about the area.

· Inspect the home you’re considering for signs of damage. Get an independent home inspection, roof inspection and termite inspection.

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· Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up? 
· See your tax advisor for related planning and laws that can affect your investment decisions.

 

Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

If you decide investing in real estate is a good idea and want to check out the North Fork, give me a call or email and we can discuss a plan to orientate you and help you understand the market.

I am in the office most weekends, or you can contact me about a firm appointment time and date.

Tel: 631 298 6131

Email: egiordano@elliman.com

Check out my Corporate Web Site: www.elliman.com/egiordano

Check out my Blog: //northfork.patch.com/blogs/north-fork-realtor

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