Real estate investing is one of the best ways to build wealth over time. There are many areas of the country seeing a huge increase in real estate development and prices. As a real estate professional, it is vital to take advantage of this in various areas of the country. The good news is that there is still plenty of time to get in to the real estate game. Here are several of the top investments in real estate for 2016 and how to prepare to make your investments.
There are many cities around the country that are building a lot of new housing. Many cities are experiencing high rates of growth, especially as people new to the area want to live close to work for their careers. New housing is going up at a very fast rate. Many real estate investors will buy new properties as an appreciation play.
Although these can be rented out, the numbers really only work over the long term if prices go up. However, in many cases new housing developments will increase in value. If you are looking to invest in new housing projects, it is important that you know that the area will continue to develop and increase in overall value in order to make the investment worth it.
Another tried and true way to invest in real estate is rental property. Anyone who is looking to increase their monthly cash flow can do so through rental property investing. There are many people who are able to eventually retire because they have so much cash flow coming in from their investments. Always make sure to keep the long term in mind when making any real estate purchase.
One of the most complicated aspects of real estate investing is the financing piece. There are many different things to consider when taking out a loan for real estate investments. Over the long term, real estate investing usually is a good investment. This is how people can justify borrowing money in order to invest. However, have a high credit score or strong financial backing is a great way to get started investing.
If you are interested in buying a property, have all of the financing pieces in place before making an offer. This will make your offer stand out and increase your chances of getting the bid.
Roman Temkin is a real estate developer from NYC.