Saturday, April 19, 2008

Safe Investment Real Estate Practices For Beginners

Many people feel as if investment is a negative word. Understandably, most people automatically associate the word investment with tedious, low yield money management. However, what we will be discussing is using strategy, intelligence, and diligence to earn quick returns on a minimal investment. Investing does not always have to be about spending volumes of money with little return This is the beauty of investing in
real estate. Follow our real estate investment primer for guidelines on what to look for when investing:


1. Location

Although cliché, location is among one of the most important issues to look at when investing. There are certain places that present an opportunity for high demand investment real estate hot spots in the current investment industry. Florida, Las Vegas, and Biloxi are currently at the top of the real estate food chain. Many properties are turning an upwards of 30% return on investment, or ROI, yearly . Some are even higher than that, but for the most part, the potential for a high ROI is prevalent in these markets.

2. Amenities

Amenities are something that makes investment real estate markets flourish. A resort in the middle of farm land is nothing but that, a resort in the middle of farm land. But when this resort is next to Disney World, Universal Studios, the beach, or casinos, it is in a place that will be much more profitable to invest in.

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3. Cost of living

The cost of living is a huge issue. Orlando is going to consistently bring investors looking for a vacation home because the cost of living is among the lowest in the country. A vacation home may be very desirable and and reasonably priced, but if normal necessities are too expensive or inaccessable, or if taxes or community orginization fees are too high, , , then what seemed to be a good investment can potentially lose its property value due to high cost of living. Therefore, the cost of living is instrumental in determining the potential of an investment real estate property.

4. History

History typically repeats itself. If an area has been a good area for investment in the past, it will be a good area for investing in the future. South Florida is an excellent example one of these areas that has a history and a future. Orlando, Miami, Ft. Lauderdale, Panama City and others have been growing for some time, and have plenty of room for growth throughout the future. Certain properties are doubling with in a year of ground breaking. Miami also has a strong real estate investment history. Although heavily developed, Miami is constantly rebuilding itself and expanding.

All of these concerns should add up to a safe investment. We have a top picks section where you can see many properties that are available in the investment arenas discussed in this article.

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