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April 2017

Residential Real Estate

Residential Real Estate Investing – Is Residential Real Estate Investing The Best Way To Make Money?

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At over $20 trillion in size, the residential real estate market has a substantial influence on the U.S. economy. In fact, the single-family home market is several times larger than the entire commercial real estate industry.

But investors often ask whether residential real estate investing is better than investing in commercial real estate?

The answer is – it depends.

Each investor has a different skill set as well as vastly different financial resources. In addition, investors have varying backgrounds and interests. Money can be made with both. The investor needs to do what works best for them. Residential real estate investing may be the best choice for many, but not all investors.

There are many advocates of commercial real estate investing, but there are a couple of reasons that I generally favor residential real estate investing over commercial real estate.

First of all, an important factor that distinguishes residential real estate investing as compared to investing in commercial real estate is that the pricing of single-family homes is often driven by inefficient information. This means that pricing and market data is incorporated at a slower rate into the marketplace as compared to commercial real estate. This can enable the astute investor to better analyze price movements and allow for improved market forecasting.

Residential real estate investing is largely dominated by single-family residences that have fewer sophisticated buyers and sellers. With commercial properties, there are many more institutional investors with extensive market experience. Accordingly, locating a good deal may be much more difficult in commercial real estate as compared to residential real estate. Investing in commercial real estate is generally dominated by skilled professionals, who have more financial resources than the individual investor.

In addition, the demand for residential real estate continues to increase. This demand has been fueled by many factors, including population growth and baby boomers. The population is growing while available land remains relatively constant.

The Baby Boomers, which consists of people born between 1946 and 1964, are reaching their peak earnings age and have more disposable income than any previous generation. This population, measured at approximately 80 million people, continues to increase demand for housing (including second homes) in cities that offer many desirable amenities including affordable health care, a favorable climate and cultural and recreational activities.

Now I’m not saying that money cannot be made in commercial real estate. But for the average investor, residential real estate investing is generally a better investment vehicle. The investor needs to look past the current residential real estate slowdown and realize that in certain markets now is a great time to be investing in residential real estate.

 

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Residential Real Estate

The Quick Guide to Starting a Business in Residential Real Estate Investing

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Opting to invest in residential real estate has become a popular trend amongst many investors. It is in human nature for investors to invest when the market is rising in terms of stock, gold, and housing and automatically stop investing when the market falls. In true essence this leads to many investors leaving a lot of money that could easily be earned.

If you take the time to understand the fundamental principals that come with real estate investment, you will be able to capitalize on various aspects that many other investors are known to miss out on.

The thing you have to understand is that real estate investing is no quick get rich scheme. Yes it does offer you the opportunity to make some quick cash through flipping houses however the word investment should always be related to long term. This will ensure you are more successful.

While most of the investors will be packing their bags to go home when the market falls, this is where you can utilise on the fundamental principals that you have learnt and capitalize in terms of large profits. You will be able to make money regardless of the market status.

The fundamentals

When the market for real estate is rising in terms of equity, it makes it very easy for any “layman” off the street to even make money in the real estate business. What you have to make sure is that you put your money at the right place at the right time.

No matter how much research you do, being able to predict the market will be impossible. For this reason it is better if you simply opt to understand four various profit centres.

1.Cash Flow – This simply entails of the amount of money your residential income property brings in. Even though it may seen quite simple to calculate, many tend to over look various factors. You need to include all the expenses that are needed to be paid. These would include mortgage payments, repairs, advertising, debts, maintenance etc. It is important you keep a tally of all expenses to give you a fair value of cash flow.

2. Appreciation – It is possible for the market value of your house to increase while you own it. This is seen to be one of the fastest ways to earn really good money. However seeing that the market is quite volatile, you never know what to expect. For this reason it is highly recommended that you keep your residential property for at least a five year period before you decide to sell it off once again.

3. Debt pay down – Now when you own a residential property you would be expected to make monthly mortgage payments. These simply are accumulated over time to reduce the amount of loan that you own to the lending company. Now seeing that we are aiming to look at long term investments there are a few things that you need to keep in mind. Now the common loan system that everyone opts for will simply include a monthly repayment with interest. If you are planning to hold your property for a couple of years, you will see that you are actually paying more than you initially took out because of the interest rate. Seeing that you are going to be looking to sell of your property in the future it is ideal to go for an interest based loan only. This will result to me more profitable for you in the long run.

4. Tax write offs – It is quite common for one to have to pay Alternative Minimum Tax on various real estate properties depending on weather or not you match the criteria. The tax is usually based on the earned income and you may even see your self having to pay short term capital gains tax as well. However there is a possibility that you can have your tax written off which can prove to be quite beneficial for many. The problem with those investors that deal with houses on a flipping houses basis, there income is treated as earned income. This means you would have to pay the full amount of tax that you would do for a 9 to 5 job as well.

If you stick to the strategies and fundamentals that have been highlighted above, you are known to be able to earn a good amount of money regardless of the market change. Any market trend that moves in your favour will obviously boost your profit prospects but even if the market moves in a negative favour, you are still going to be able to “fight” your way through.

 

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Luxury Homes

A Luxury Home As the Best Investment For Retirees

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Workers usually spend most of their lives working in order to have a brighter future. They usually do their best in order to have the best life here on earth.

And as they reach their retirement age, it is important to use their hard earned money wisely so that they will enjoy their fruits of labor.

If you are a retiree, for sure there are lots of things that are coming out from your mind on where you can use your hard earned money. Actually there are lots of things that you can do out of the money from your retirement. One of the best things that you can do is to invest in real estate.

Real estate is one of the best and thriving markets. There are lots of people who are investing in real estate especially in Miami. Miami is the best market when it comes to real estate matters. And because of the hard times that these retiree experience during their working days, they only deserve the best thing. One of the best things that they really deserve is those Miami luxury homes. Everyone wants and dream to live in luxury. And if you are one of that dreamer type, then it is time to make that dream come true through these Miami luxury homes.

There are lots of people who misinterpret when you say luxury. Most of the time people think that you must have a millions in order to experience luxurious lifestyle. Actually living in luxury does not necessarily involve money. It is just a way of comfortable and convenient lifestyle. Having simple pleasure at home can be considered as luxurious and comfortable.

Because of what a Miami luxury can offer to people, it is the best investment for that retiree. After the hard work that the retirees done in the past, having their own luxury home can be the best investment that they can have. There are lots of options that you can choose from out in the market but for sure nothing compares with the luxury and pleasure that the Miami luxury homes can provide. Usually these luxury homes are designed in luxury and provide pleasure to the person living in it. You will surely enjoy the class and elegant ambiance that it can provide.

Each of these luxurious homes has their own style and features that can let you experience a luxurious lifestyle. You will surely amaze with the elegant and amazing interior design and for sure you can be proud of it.

 

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