Jeff Adams: Are Real Estate Investments in 2013 the In-Thing?

Each New Year brings in a lot of new things. All the industries and all the sectors are affected by the New Year. The year 2013 has also brought quite a few changes with it, in the area of investments in general and in the field of real estate investments in particular.

Because of all the changes, investors are in a fix. They have to be constantly innovative to benefit from investing in real estate in 2013. It is clear that their old strategies will no longer work. So what has changes in real estate investments in 2013?

What has changed in 2013?
Before beginning to understand the changes, it is necessary to understand the real estate market properly. A clear understanding of the real estate market will help in comprehending the changes that are have come into effect in 2013.

It is a known fact that resale value of each and everything is lower than it’s actual price. But the same does not hold true for real estate. In fact, the resale value increases with time, making real estate a profitable investment proposition. Only in extremely rare cases, such as when the property is under foreclosure, due to mortgage payment defaults, does the resale value or real estate decrease.

However, real estate market trends are driven by economy and current market situations, including interest rates, demands for homes etc. So particularly in 2013, if you are looking at real estate investments, you need to consider the following aspects.

  • Price of land for each square meter
  • General prices of properties and forthcoming trends
  • Prices of land and property separately
  • Rent trends

If all the prices are high then the chances of making profit are 50-50. When the market is in a moderate state then you can make a lot of profit. By striking the right cord correctly you can keep earning for a long time from your real estate investments.

A Look at Real Estate Investment in 2013
True that the basic needs for entering the market are enough money and availability of property within budget. Yet, that is not enough. A detailed study of the situation in your context is necessary.

If you have a lot of money then you ought to invest even more carefully. A wrongful investment will make you suffer huge losses. So, make sure you look at current day trends and current day economy before pitching in your money.

Of course, the first step into real estate market or real estate investment is buying a house. However, if you’re an investor then you will have to see what kind of property you wish to invest in. It could be an office space, a huge bungalow or even a small flat.

If you’re entirely confused then ask someone with experience for help. They will tell you about what’s right and what’s wrong relating to their experience. This way you can judge yourself and the market better.

It is pointless to buy a property which saturates the market equilibrium. If you’re an investor, you ought to know how to get benefits out of your property. Someone who has studied the market to its most minute detail will never fail to earn profits from their investment.

Thus, a sound knowledge of the market is an absolute necessity. An investor must know of all the ongoing trends with regards to borrowing and lending of money in the real estate sector. Borrowing and lending happens through banks, finance schemes, money lenders etc. A sound knowledge will help you recognize your target market better.

These days people mostly prefer picking up home loans such as these:

  • Loans on which interest rates keep on changing
  • Loans on which interest rates are stagnant
  • Loans offered by the Government
  • Loans from financial institutes
  • Loans from money lenders

Is 2013 advantageous for real estate?

Yes, 2013 is beneficial for property investment. The prices in the real estate sector have never been this high. From the boom of 2012, real estate has come to a stable level in 2013. A number of investors have already benefited from investing in 2013, especially mortgaged properties. Selling of these properties fetches quite an amount of profit.

If you have money enough to invest in 2013, then you should very well go ahead with it. You will definitely not make a loss in this year. But before you go ahead, study the situation well. A small mistake on your part may cause you a life time of loss. Hence, invest in real estate but invest wisely.

If you do it wisely, then you are sure to benefit out of it. The year 2013 is the year for investment in real estate. Just make sure, you know exactly what you’re doing at each point and you’re sorted.

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