Investing in Real Estate is a trend today. If any person thinks of an investment, the first thing that strikes their mind is property. However, sometimes ‘the smartest actions are those which you do not take’. This old maxim seems completely relevant when the market place seems like a contradiction.
Every time the market booms up it only makes the veteran investors more nervous. Between soaring estimations in different parts of the world, there are many reasons to be cautious. Well are you planning to invest in real estate? Then there are certainly some measures to take and some do’s and don’ts to keep in mind.
To begin with Real estate investing includes the purchase, ownership, management, rental or sale of property which we term as real estate for profit. Jeff Adams has given a great piece of advice in offering great ways to make private money. Still as an investor it is a must for you to take a look at these.
#1 Infrastructure Stocks and US Real Estate Stocks are a Yes:
Investment in infrastructure has become a relatively new class of assets and is now available through various mutual funds. With the focus on more energy infrastructure programs, this are of investment will be a sensible choice.
#2 Don’t buy REIT’s:
Real Estate Investment Trusts pay out their profits as dividends and since they are based on long term leases, they are highly predictable. REIT’s tend to slump with an increase in interest rates. REIT’s must have performed well due to low interest rates last year but this year, it’s going to be a tough one.
#3 U.S. Industrials are a Yes:
Dividends paid by industrial stocks are really hefty. More than that they are expected to increase their earnings by 10% this New Year probably five times more than what utilities will over. A chief market strategist John Stoltzfus said that if orange was the new black then industrials were the new technology. There is a certain level of comfort in owning these and they offer a lot of opportunities.
#4 Don’t buy utilities:
In the past couple of years investors seeking high dividends may have invested in utility stocks in the past year but this year they might be hard struck. When interest rates rise the shares of service providers like electricity and gas also seems to be doubtful due to lots of debt. Some real estate experts say that utilities might not be as defensive as people feel.
Jeff Adams, the real estate trainer has said that if we do not try to reinvent the wheel and learn from those who were successful before us trying to learn from mistakes and being cautious while investing in the market, we become more successful faster.
Remember, real estate is no rocket science however the best way to make it to the big arena is to have a business approach and master the basics. Once you do that you are only steps close to becoming the king of Real Estate investing.
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