Should I Play Hopscotch with the Housing Markets?
While it may be tempting to “play” the market in an effort to get rich, you should first be thoroughly familiar with the economic conditions of the real estate market you’re in. Your success in real estate investing depends on your ability to see things for their long–term potential. Frequent turnover only works in the context of a healthy housing economy, which may be several years away.
Low housing prices at low rates can be very lucrative for real estate investors. When mortgage rates are low, the best way to take advantage of the market is to either buy property, or try to refinance any current mortgages at a lower rate. Lower prices at lower rates could be very lucrative for the right investor. Instead of potentially losing money by selling a property in a bad market, try leasing your property instead through a licensed real estate agent. Your agent will place tenants in the home and perform managerial duties for a monthly fee. Consider this alternative until the housing market rebounds and you can cut a profit. Construction costs are currently low, therefore any remodeling needed for a sale in the future can be done at a discount. Whatever your interests in real estate, you should know the profitability implications of good–and bad–economic conditions