How to Spot Hot Real Estate Markets

20230526053117_6470442562b73.webp

I’ve always been intrigued by the way surfers ride across the waves. The surfer waits long for a little sign, puts his gear in motion, gets into position near the peak and glides through with a small wave, trying to catch the big wave before it breaks. It’s a really risky game, requires a lot of patience. But he trusts his calculations, stays perpendicular to the upcoming waves and there he goes, riding the wave. Successful real estate investors have learnt to move like the surfer.

They have figured out that the best investment strategy as a real estate investor is to simply be on the lookout. That is, open your ears and eyes to the possibilities available to you. A lot of real estate investors built their real estate empires by being informed and proactive when they spotted opportunities. How do you adopt this same strategy and generate wealth by spotting hot real estate markets?

Yea, it’s true. Too much information may be disadvantageous in some cases. All you need may be a stroke of intuition. Alas some real estate investors fall into the trap of making ‘educated guesses’ and filling their heads with too much details. Eventually, what could appear to be a ‘hot property’ ends out being a deal turned sour. Looks may be deceiving. But you need to look at the obvious signs and trust your instinct at the same time to ride the big wave of global property investing.

IDENTIFYING AREAS OF GROWTH

1. Gentrification.

These areas may have had poor reputation in the past, but now they are seeing homeowners moving in and changing the suburban landscape. Are there a number of renovation and improvement projects going on? Are new homes being built? Which means developers are turning their focus to that area. Are new cafes or retailers opening up? Most importantly, compare house pricing for a period of 2-3 years, if prices have grown steadily, look at the demographics. An increasing number of young residents with decent incomes is a strong indication that a suburb is about to gentrify.

2. Look for the ripple effect.

If you cannot afford to buy in a hot real estate market (you may have missed the mark this time), you may still be able to shop in the area by checking the surrounding suburbs. This takes time, so you need to know what phase, the local real estate market cycle is in. This will help maximize your chances of riding the wave of growth. How to analyze real estate market cycles.

3. Examine supply and demand

The relationship between supply and demand for property in an area is a key factor in price growth. If there is no more capacity to build in the suburb, but demand continues to grow, prices are likely to rise.

TIPS FOR FINDING HIGH DEMAND AND LOW SUPPLY AREAS.

·        Look for areas where rental performance is increasing. This indicates that an area is popular with tenants. When tenants become owners, they also tend to buy in the same area they are renting;

·        Look at the demographics of people moving in the area. For instance, suburbs where median age is around 35 or so tend to gentrify faster as these demographics tend to have better incomes and can thus afford to buy or rent more expensive properties;

·        Look for areas with increasing population. The population itself is not enough to boost prices, but when combined with other indicators such as increased incomes and low supply, this is a good indication that real estate prices will grow in the area.

·        Look for large ongoing infrastructure projects. This is a good indicator that the area is likely to see an increase in demand for housing as workers gather in search of employment. Projects that have already begun are preferable, as project pledges can fall through with changes in government and as budget priorities change.

Yes, you can be the one sitting on the next hot property. All it takes is a little knowledge, research and intuition.

Previous Post

5 Fears Limiting You from Real Estate Investing

Next Post

3 Ways Top Investors Finance Their Foreign Property Investments

Related Posts

20230526053215_6470445f0b88c.webp

5 Fears Limiting You from Real Estate Investing

  • 11, May 2023

Just like any investment where speculations are involved, there is risk with real estate investing. Investors who have gotten their fingers bit have fed us the ‘negative stories’ and have helped create many fears. Yes, there are risks, and they can make for a pretty bad fall if you don’t prepare for them. But there are also fears. Here we’ll explore five basic fears stopping you from making that real estate investing decision.

I also hope to expound on these fears to help you see that you can get past them. The best way to overcome fear is embrace it and do that which you fear. So, no matter what we say, the decision to take the plunge still lies in your hands. Will you create long-term prosperity with your real estate investment or let fear hold you back?

1.     Negative Cash Flow.

Cash flow is what remains when the operating expenses, the mortgage costs and other expenses have been deducted. The fear of negative cash flow, mostly fed by investors who have been there and done that, has held many people back. However, it is just about making the right calculations. You don’t expect to be 100% accurate about the possibility of vacancies or how much rental income you could make in a month but you can obtain past rental figures from the previous landlord, estimate possible repair expenses and still get your numbers close a notch.

 

2.     Right Timing.

You’ve always heard ‘you’ve got to time the market’. The problem with that is this: you might never find the right time. If you’re afraid that the market might just not be ripe for real estate investing, I say that’s FEAR. As long as you can comfortably buy a property without putting any strain on your family’s budget and the country in which you’re investing isn’t in a pothole, go right on. The time is right.

 

3.     Chasing the positive cash flows.

Some real estate agents who have tried and fumbled will tell you that you can’t cash flow positively on duplexes, condos, office complexes etc. With discouraging tales of despair, you catch the FEAR. This is actually an opportunity to learn from their mistakes. They failed because they went in with the wrong PLANS. Learn, attend seminars, buy DVDs and EBooks and develop a fail-proof strategy and you’ll get the positive cash flows.

 

4.     The hassles of management.

Chasing renters for each month’s rent and dolling out money on property repairs are all reasons to run far from real estate investing. What if you had a troublesome tenant giving you problems? The hassles could keep you awake at night. You however do not need to go through the stress of managing your property yourself. You can hire professional property managers or management companies to do the job and do it well.

 

5.     Lack of experience.

Yes, you do lack experience. All the seminars and courses do not make up for firsthand experience. So, if you lack the experience, why not work with a realtor who is a local expert and leverage their experience. (Check out the importance of a local realtor).

 

In conclusion, it’s not certain that investing in real estate will make you an overnight millionaire but if you do your homework and work with the right people, you’ll do just fine.

By Bebuzee Admin Read More
20230526050955_64703f231909e.webp

Whats the impact of Brexit on London real estate?

  • 25, September 2023

While some analysts believe Brexit has made the UK housing market porous. Others believe Brexit will pave way for a stronger housing market in coming years

 

The interaction between real estate and foreign policy is clear cut and this is more than proved by Brexit. As the March 2019 final Brexit negotiations approach, a precursor has been set, which might influence London's real estate market in coming years.

 

A recent report from international property firm, Knight Frank, puts London as the top favorite destination for global capital. This is due to the fact that London still presents liquidity and stability, factors attractive to investors.

 

Nick Braybrook, Knight Frank London's head of capital markets says ‘Despite the political turmoil surrounding the UK with Brexit, London is once again the most liquid real estate market in the world. It is more popular as a home for international investment than Paris Central, Manhattan, Munich, and Frankfurt combined,’.https://www.propertywire.com/news/global-news/londons-commercial-property-market-top-draw-international-buyers The influx of foreign investors particularly Asian buyers could be due to a weakened pound sterling, which has led to a slow growth in home prices.

 

According to an article by FT https://www.ft.com/content/87b1f284-1452-11e7-80f4-13e067d5072c "home prices have seen slow growth since the 2016 Brexit announcement. In May 2018, prices fell by 0.4% in London from an annual rate of 12% in 2016."

 

The pre-Brexit rise in home prices, which were growing at above 10 percent year over year before the EU referendum has given way to slower price growth. 2018 so far has seen a price growth of only 3% all over the UK. For millennials and London residents, the pre-Brexit rates had kept them on edge with staggering prices. Now the current fair price increases and a residential market that is more or less slow present better odds of landing favorable home deals.

 

Currently, London's economy is great. There is a low unemployment rate and inflation rates are down. Speculators, however, believe that the thriving economy will lead to higher interest rates soon. This means that first-time homebuyers would need to pay higher down payments on mortgages.

 

And even though foreign investment has decreased in most sectors, due to the uncertain climate surrounding BREXIT, real estate foreign activity is at its peak. Even the tax hikes introduced on foreign landlords, renting out their houses, hasn't diminished London's foreign real estate activity.

 

2019 will definitely be an interesting year for the UK's housing market, depending on the outcome of the final negotiations between the EU and the UK. However, an abrupt Brexit will do no one any good. Mark Carney, the governor of the bank of England has warned that a "disorderly" Brexit will lead to interest rate hikes which might greatly affect the property market.

 

According to FT, Theresa May’s government is actively seeking to avoid such a scenario. The prime minister has softened her position on Brexit in recent months and has agreed to a transition period that would maintain much of the status quo until at least 2021.

 

What changes do you think might take place before 2021? Leave your thought

By Bebuzee Admin Read More
20230526051448_6470404819b05.webp

5 Inexpensive Home Improvement Tips To Improve Your Homes Value

  • 29, August 2023

Depending on your home's value, your market and comps in your neighborhood, you could consider making renovations in your home before listing. In a place like New York, however, where houses are being snapped up fast and prices are over the roof, renovating your house for sale might be a crazy idea. But in suburbs with high inventory, your house needs to measure up.

 

When selling, you wouldn't be looking through the same eyeglasses as a new homeowner. Your calculations and priorities will be much different. The most important thing when you have to consider value is return on investment. What renovations will make my house sell fast and at the same time give good return on investment? Before you embark on gutting your circa 1990 kitchen, the first thing you might need to do is consult an experienced realtor who knows what works best in your particular neighborhood.

 

You might find out that minor cosmetic upgrades will get more buyers through the door. And yea, the door is important. Instead of spending money on pricey renovations like adding a deck or basement revamp, Remodeling magazine’s 2015 Cost vs. Value Report says that replacing your existing front door with a new steel door will net you a 101.8% ROI for a minimal replacement cost of $1,230. Knowing which areas to spend on will help save you a lot of money when making renovations. Let's look at five low-cost ways to increase your home's value.

 

        Inexpensive Home Improvement Tips to Improve Your Home’s Value

 

1. Consider curb appeal. Nothing says 'welcome to this lovely house' to a prospective buyer as a nicely mowed lawn, a few shrubs here and there and a well-swept walkway. The first impression buyers have as they drive to your home is truly important. So, it's necessary you set the stage right. Hiring a good landscaper will be worth the money. Not only will your home appeal to prospective buyers, your neighbor would also love the effort.

 

2. Have a cohesive kitchen. Kitchen plays a big role in home improvement. Many Realtors call it the heart of the home. Indeed it is; since an average American homeowner spends at least 37 minutes daily in the kitchen. Sprucing up your kitchen demands that you create the impression of a clean and updated kitchen. One way to achieve this impression is creating cohesiveness, especially with color. Mix and match kitchens are not the best. If your kitchen appliances don't match, consider ordering new doors, e.g new cabinet doors or face panels for them.

 

3. Work on your bathroom. Next to the kitchen, bathrooms are important to potential home buyers. You can make a difference in your bathroom at a low cost by adding new toilet seat and a pedestal sink. These are also pretty easy for homeowners to install on their own. One thing you may not be able to do on your own but which will add value to your bathroom is replacing an old, discolored, bathroom floor with vinyl tiles. Bright, energy efficient lighting will also improve your bathroom's appeal.

 

4. Update closets. Cramped storage spaces are not attractive to potential buyers. You can step up your storage by adding a do-it-yourself wire and laminate system to bedrooms and pantries.

 

5. Check the mechanics. Having a minor inspection and working on existing faults in your home like faulty outlets, loose wires and water leaks give the impression that someone has really taken care of the home.

 

 

 

By Bebuzee Admin Read More