Are you interested in local real estate investments? If so, prepare to undertake serious and multifactorial decisions. As portfolio manager and investment expert David Kaufman said in an article for the Financial Post, an investor should be always cautious whenever new ventures present themselves.
Investors, even professional ones, have a tendency to lump real estate investments into one bucket, but that is unhelpful when allocating investment dollars and assessing how risk is spread across a portfolio.
What You Should KnowKaufman enumerates some significant aspects that determine your returns from real estate investments. The type of real estate, the way the holdings are handled, and (most especially) the location, among other things, influence your possible gains or losses. As Kaufman suggests, “you must first get a handle on the types of real estate that you might own and how they are (or aren’t) related to each other.”the key to real estate investingWhat Shouldn’t Stop YouAlthough finance experts may give warnings that it’s possible for the market to crash, this shouldn’t be enough of a reason to skip on local ventures. “Put all [the many] factors together, then think of how market forces will affect these vastly disparate real estate holdings,” the author further writes. With this, he notes that even if there are risks of a real estate correction, these threats should not necessarily discourage you from buying a house for profit.
Without a powerful macro force that affects all of these situations simultaneously (such as a sudden and extreme increase in interest rates), the simple answer to these questions is that real estate is, in fact, local, whether it is by geography, type, investor or capital structure.
What You Can DoUsing Vancouver MLS listings with the help of a reliable agent, you can find viable real estate properties that you can afford and turn into profitable assets. You can select the housing types and locations – such as the most sought-after neighbourhoods in the city – that have better projected appreciation rates. You can even be given assistance on finding flexible financing options when you need a mortgage.Only licensed realtors like Jamie Hooper have a comprehensive access to the MLS listings in Vancouver. What’s more, this professional can use this resource to provide you thorough, customised reports and specific details on the properties you wish to purchase. With a reliable expert by your side, you can make better informed investment decisions.(Source: The key to real estate investing? It’s all local, Financial Post, September 5, 2014)