How to Find Hot Markets for Buying Investment Property
Investing in real estate is not a new path to financial success. It is a well-worn path and it is so well worn because it is such an effective way to make a great deal of money in a relatively short period of time. But you have to be a forward thinker to make any serious money in the buying and selling of real estate.
The objective is to buy low and sell high and that means that you have to make a guess (an EDUCATED guess) as to what is GOING to happen tomorrow or next week or next year or ten years from now and not base your decisions on what happened yesterday, or last week, or last year or ten years ago.
Think about the neighborhood that you grew up in. Your mom and dad bought the house when the subdivision was new. It isn’t new anymore. It isn’t on its way UP. It is on its way DOWN.
The residents and the buildings are all beginning to show their age. That is the nature of real estate. What goes up will eventually go down. You always want to buy when the area is on the rise and not when it is in decline. There are, of course, exceptions to this rule but there aren’t many.
In short; you need to find the hot markets when buying an investment property and in a nutshell, the hot market is where the people are GOING. Determining where people are going is the trick.
Buying in an area that is already popular can be a hot market providing you can make a good deal on the property but finding out about upcoming changes in the infrastructure can lead you to where people will be going in the future.
Infrastructure changes are such things as major highway construction, marinas, or entertainment facilities. Basically, you base your real estate market investments upon the cold hard facts and not what you hope will happen or what your barber tells you.
Right now isn’t a great time to invest in real estate in Manila but there are hot properties in the provinces that you can take full advantage of while you wait for the real estate market to recover. Cavite, Cebu Province, Iloilo, Bacolod, Ormoc is a good example.
Naga and Carcar in Cebu Province are just 45 to an hour away from Cebu City or Siargao of Surigao. It is a hugely popular vacation destination and beachfront property that has been on an upward spiral for several years but it appears that the trend is going to continue. Although the provinces experienced hardships right now because of a super typhoon that hit the provinces recently. The recovery phase will surely bring a lot of investment opportunities to these provinces.
Real estate investing is not an exact science. You always have to weigh the risk against the potential reward and if you do decide to invest in a property it is wise to employ a local attorney to oversee the process.
Then there is always the ‘cool factor that shouldn’t be overlooked when searching for hot investment real estate. For example: in Siargao, there is an area called Cloud 9. International Surfing competitions were held there that were loaded with surfers and other visitors. Suddenly, Siargao became a very ‘cool’ place to live and real estate prices soared! So don’t overlook ‘cool’. Today Siargao is facing difficulty as it was badly hit by a supertyphoon
Keep both eyes on large corporation expansion plans. When corporations build, expand or even relocate the real estate market will boom simply because of demand for housing and small businesses. If an SM or any mall is going to be built in a town, can a Jollibee be far behind? And all of those people who will be coming in to run the mall and all of the small businesses that it spawns will need housing.
Yes! Business can cause real estate prices to go up and can create hot properties for investment purposes!
Remember that old song that Willie Nelson recorded, “You have to know when to hold ‘em, know when to fold ‘em, know when to walk away and know when to run”. Although the song was about gambling the advice is solid for investing in real estate.
Choosing what properties to invest in should be made strictly upon solid facts. A building permit for IKEA is solid proof that IKEA is going to be built and that the adjacent property values are going to go up.
Your cousin telling you that he HEARD that an IKEA was going to be built is NOT a fact. It’s hearsay and you shouldn’t bet a lot on hearsay! Investing in real estate is an excellent way to get a very high return but you really do need to know what you are doing to keep from losing your shirt.
That is why it is best to look for legitimate property portals and licensed and accredited Real Estate Professionals. They can lead you to the right property without having to hunt properties on your own. Licensed and Accredited practitioners will help you find the right property and will save you from all the hassle of having to check the authenticity of the documents or proof of ownership.
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