Is Real Estate Investing still solid in todays market?

>

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

When the same local market is at the low end of the appreciation cycle, reaping a profit on the family home can take a good deal more time but the reward can be just as satisfying if price and location and carefully considered.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. According to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than, the rate of inflation. Housing prices actually rose an average of 10 percent during the recessions of the mid-1970’s and early 1980s.

CENTURY 21 statisticians report that the rate of home appreciation since 1990 has been around five percent nationally, with inflation hovering around four percent. Homeowners, obviously, are still staying ahead in the real estate game on average.

And, with mortgage interest rates the lowest they’ve been in two decades, real estate today is a more attractive investment than it’s been in years.

First-time buyers are the big winners in this environment. Drawing up a budget can help you and your family decide on what you can afford. Once you’ve determined a price and picked your desired community, shop around to find the best house you can buy for your money. This strategy can help you realize greater appreciation two or three years down the road.

This is also a good time to purchase a second or vacation home. A bargain cabin in the woods today might bring an excellent return when housing prices move upward. Affordable second-home prices also allow you to purchase a vacation home that can serve as a stepping-stone to a larger retreat in the future.

But appreciation isn’t the only advantage to buying a home. The federal government thinks home ownership is so important to the future of our country that it allows mortgage interest to remain the last substantial tax shelter for families. Owners can also take deductions on their property taxes. And, the profit on the sale of your home remains tax free as long s you buy a house for a greater or equal price.

So before you decide that this is not a good time to invest in residential property, re-examine the financial benefits of owning your own home and put them to work for you.

About the Author

Joaquin Fagundo is a part time real estate investor and operator of www.browsedaily.com a website devoted to new and experienced real estate investors.

Tips for selecting a Real Estate Agent

>

To begin your search for the right person to represent you in a home sale, ask a friend or work mates for a recommendation, preferably someone who has used the real estate agent’s services.

You want an agent who is familiar with home sales in your price range and in your target are. It is essential that you feel comfortable with the agent during an interview since comfort level and good communication are very important.

You want an agent who is familiar with home sales in your price range and in your target are. It is essential that you feel comfortable with the agent during an interview since comfort level and good communication are very important.

During your interview, don’t hesitate to ask the agent about the number of homes the agent has listed and actually sold. The length of time the agent has been in business is not necessarily the best yardstick.

Make sure to ask about their commission fees as well. These fees will vary depending on your location and mostly likely be fixed, however, always ask if they are negotiable.

Remember, the agent you choose is going to be one of your main sources of information. A good agent will advise you and guide you in many ways. Look for a representative who is pursuing sales, returning telephone calls, aggressively working in your best interest and whose only job is real estate.

Interview Checklist

How often will you promise to call or write me with activity on the home?

I would like to have a list of your satisfied clients (of comparable properties) as references?

Describe your history of real estate sales?

Most agents sell just 30 percent to 60 percent of their listings before the listings expire. Choose an agent who sells 85 percent if possible.

What percentage of the asking price, on average, have you received for the homes you’ve sold during the last year?

What is the average number of days your listed homes stayed on the market?

Why should I pick you over all other agents?

About the Author

Peter Roderick is a mortgage specialist and Director of Refund Home Loans Beechmont. For more information, articles, news, tools and valuable resources on home or investment loan, refinancing, debt solutions, visit this site: http://www.refundhomeloans.com.au or email peterroderick@refundhomeloans.com.au to register for our free monthly newsletter.

Summit REIT board supports $3.3-billion takeover offer by ING Real Estate Canada Trust 

Summit REIT board supports $3.3-billion takeover offer by ING Real Estate Canada Trust 
August 30, 2006 - 5:03 p.m. TORONTO (CP) - Summit REIT (TSX:SMU.UN) board supports $3.3-billion takeover offer by ING Real Estate Canada Trust; trust urging unitholders to accept the “fair” offer.

Yahoo upgrades real estate site 
Yahoo Inc. on Tuesday upgraded its real estate site with new features that provide current home valuations, more than 3 million real estate listings and other new interactive features.