Rents are going through the roof in NY and I am greatly regretting not buying a place. With the US housing market starting to look more buoyant, now would be a good time to consider the opportunities that can be gained from investment in housing. I advise every woman to buy something, somewhere as an investment in your future. My one friend was hipping me to the importance of always having a studio apartment that you own, either in NY or in a popular vacation area even if you are married or living with someone, as a monthly moneymaker. Wish I had met her years ago!
The Signals
The US housing data specialists, CoreLogic, has just published its most recent national house price results and the survey shows that house prices throughout the US increased by 4.3% during the month of July. Speaking about these optimistic signs the CEO of CoreLogic, Anand Nalthambi recently commented: “Although we expect some slowing in price gains over the balance of 2012, we are seeing very clearly the light at the end of a very long tunnel.” The influential Reuters news organization also recently published figures that showed that the housing market is on the rise stating that house sales have increased by 25.3% compared to July 2011.
Advantages
In order to take advantage of this projected market optimism, those looking to invest in property should examine the data. One of the states where the property boom is expected to develop is Florida. This State is appealing to the investor thanks to the large numbers of foreclosed properties that are on the market. Investment property in Florida includes a mix of abandoned homes, those selling cheap following on from foreclosure, new builds and a large number of condominiums in the beach resorts including the ever-popular town of Miami.
Investment
With house prices still relatively low across the whole of the US, there are many opportunities for potential investors to take advantage of the market. Compared to the UK and other English speaking countries, there is still a very high rate of return on capital in the US with the aforementioned “buy to rent” market proving to be the most successful form of investment.
Potential housing investors should always look at the area where they intend to buy a property in terms of its potential job growth; it’s no use buying a property if no one can afford to rent it, or if the region of proposed investment is popular for other purposes. Houses for sale near national parks, the beach and other amenities will always be easier to let than properties in areas of high crime or with poor employment prospects. This is why owning property in places like NYC, Florida, or Hawaii, will always be a great investment.
Managing the property
Some people buy a property with a view to refurbishing it and then selling this property when house prices have risen. In these current economic times, it’s worth noting that bank loans are still difficult to obtain and the mortgage market remains sluggish. Obviously there are still many cash investors and anyone trying to sell their investment property should try to market their house accordingly.
If you intend to lease your investment, it’s a good idea to use the services of a Property Manager or Managing Agent. This will cost in commission. But the savings outweigh these costs since this will ensure that the property is kept in good condition and is suitable for resale at a later date. Make sure to keep abreast of all that your Managing Agent/Property Manager is saying or doing on your behalf. I recently dealt with a Managing Agent, who created an unnecessary bad situation for a landlord potentially costing him good paying tenants. So you really want to make sure to be included in any conversations with existing or potential tenants.
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