Investing in Real Estate
September 21, 2011
With low returns on stocks and savings, investors are turning to real estate.
REITs (Real Estate Investment Trusts) have become of interest for investors who don't want the responsibility of managing a rental property but still want to be invested in real estate. These REITs hold large numbers of properties, most often commercial buildings such as retail stores and hotels.
However, there are opportunities in the single family residential market. Prices and interest rates are low and some investors have been able to receive as much as 2 percent of the purchase price in rent.
If you are thinking of buying a rental property, be sure to check out the neighborhood and what rents are for similar properties in similar neighborhoods.
Be aware that you will probably have to put 20 to 30 percent down and that you will have closing costs to pay; loan origination, escrow, title.
The better the condition of the home, the easier it will be to find a renter. Fresh paint, new carpeting, new appliances always attract a tenant who is likely to take care of the property.
Another area to check out is the area of governmental regulation. There may be fees to be paid to the city and you will need to factor those fees into to your balance sheet.
Buying a real estate investment property can be a good way to put your money to work. Be sure you do your homework and you likely will benefit greatly.
With low returns on stocks and savings, investors are turning to real estate.
REITs (Real Estate Investment Trusts) have become of interest for investors who don't want the responsibility of managing a rental property but still want to be invested in real estate. These REITs hold large numbers of properties, most often commercial buildings such as retail stores and hotels.
However, there are opportunities in the single family residential market. Prices and interest rates are low and some investors have been able to receive as much as 2 percent of the purchase price in rent.
If you are thinking of buying a rental property, be sure to check out the neighborhood and what rents are for similar properties in similar neighborhoods.
Be aware that you will probably have to put 20 to 30 percent down and that you will have closing costs to pay; loan origination, escrow, title.
The better the condition of the home, the easier it will be to find a renter. Fresh paint, new carpeting, new appliances always attract a tenant who is likely to take care of the property.
Another area to check out is the area of governmental regulation. There may be fees to be paid to the city and you will need to factor those fees into to your balance sheet.
Buying a real estate investment property can be a good way to put your money to work. Be sure you do your homework and you likely will benefit greatly.
posted by shirley harry at 8:59 AM
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