Real Estate Investment - When, What and Where?

By: Natalie Aranda

Real estate investment is one of best options for many investors to create wealth while enjoying numerous tax benefits. A real estate investment decision involves much more than choosing a right location to buy your dream properties. Besides where to buy, there're questions of what and when to invest in real estate.

When

Like economy and stock market, real estate often runs in cycles of approximately 7-10 years. The value of real estate often goes up for a few years, tops out, keeps flat or goes down for 2-3 years. The availability of low interest rate mortgage and recovery of economy will eventually jump-start a new cycle of real estate growth. Novice investors tend to invest at the top of the market while wishing the market will go even higher to reap a quick profit. Smart money, however, buys real estate at, or near, the bottom of the market when most of investors are reluctantly and don't have the financial power to buy.

Beside the life cycle of real estate market, individual property has its own life cycle. Properties can be purchased at pre construction, as new home inventory or as owned properties.

What

Single family home has traditionally been the preferred option of real estate investment for many individuals. Instead of selling their first residential home and moving to a bigger house, some home owners choose to keep their first home and rent it out by using a property management company. The new trend in real estate investment is to own hotel condos or vacation homes. There're many advantages of owning hotel condos or vacation homes.

Where

Once your investment options are not limited to residential properties, the location of property isn't limited to the place where you live. Hotel condos and vacation are, of course, often located at well-known resorts, from Vail Colorado to Miami, Florida.

Real estate investment is a complex decision making process. Most investors will seek help from real estate professionals. Nowadays, with the vast amount of information freely available on the Internet, search engines are where people start doing their own homework. For instance, typing "Miami Pre Construction" in Google, Yahoo or MSN search engine, you'll see a list of pages where you can locate the information about buying Miami real estate at pre construction price at Miami, Florida.

Copyright @2005, 4th Media Corporation

Natalie Aranda is a freelance writer. She writes about family, health, holiday and Christmas Gift Ideas.


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