Real estate was always considered a prime investment option. Property rates usually increased in value, and landlords would always recover their investment in the form of resale value or rental payments. However, the 2009 recession injured consumer confidence substantially. Real Estate investors and owners were left with properties that were far lesser in value than what they had initially shelled out.
The Good News Is That 2015 Is Completely Different.
Times have changed. The 2015 real estate market is flourishing and the market is predicted to improve even more over the next year. The trends in 2015, however, are a little different. Industry pundits like Jeff Adams #1 Real Estate Trainer state that rates are low but careful investing in real estate is necessary to make a profit. He shares a few emerging trends that could influence the real estate market big-time in 2015.
New Districts
Large cities like Dallas and Houston have already reached the apex of internal development. In an effort to increase accommodation and reduce crowding, smaller cities located nearby are now prime areas of development. Residential development in satellite cities or in suburban areas is on the increase since late-2014. These areas are also the best places to find affordable real estate in 2015.
Luxury Homes
In 2014, single family dwellings were in demand as investment properties. Rental rates also favored single family dwellings. In 2015, the market appears to be leaning towards luxury homes. Real estate values for luxury homes have appreciated by as much as 8% in 2015. This indicates a healthy return on investment for buyers who can afford such properties.
Vacation Homes Are a No-No
Traditionally, investors purchased properties as vacation homes which were rented out to make a profit. However, industry pundits like Jeff Adams state that this will no longer be a profitable option. It’s a far better idea to invest in homes that will rent all through the year for a continuous income.
Turnkey Properties
Real Estate Investors now have the option of buying turnkey or fully-vetted properties. These properties are redeveloped, and are already occupied by a tenant. With such an option, buyers are assured of a steady income. For first-time buyers, this is a great option. However, as the property is fully set-up, the initial purchase price may be a little higher than market value.
Flipping Properties
Flipping is a great way to make a profit says Jeff Adams. However, the actual profit depends on factors like location, house size, existing mortgage, renovation costs, etc. This type of real estate investment has several risks and it is not recommended for first time investors.
Jeff Adams urges first-time real estate investors to research the market as much as possible in 2015 and to keep up with real estate trends. With rapidly changing markets and fluctuating interest rates, he urges first-time investors to start investing as soon as possible to make a profit. With the right training and extensive research, it is definitely possible to become a successful real estate investor. It all comes down to find a good property, at an affordable rate located in a good area.
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