10 wise investment moves in real estate

10 wise investment moves in real estate

Sept 6, 2010

10 wise

investment moves in real estate

1 WAIT FOR ROCK-BOTTOM PRICES

Watch out for rock-bottom prices from prime market to newbuilds. Throughout the world, except in a few spots, sales volumes and average property prices are falling. In some places in Europe and the United States, properties carry reduced prices of up to 44 percent. Choice spot: Now is the time to buy into New York real estate. It may never be as low as it has dropped these past few months.

2 BORROWERS BEWARE

Obviously, in the credit crisis, there are no two ways about it, Building societies will be lending less; borrowing will cost more. Borrow less and dig into --- or liquefy --- your other assets to buy real estates.

3 PUT MONEY ON INNOVATION

Find the areas that will outperform their neigbors. Now is the time to be extra creative, very innovative. Find projects that stand out despite the crisis.

4 NO TIME FOR GREENHORNS

Now is the time for part-timers and gamblers to bow out. Or, for those who have lots of money but little expertise, make sure you get good advice from a professional.

5 BANK ON SOLID VALUE PROPERTIES

Property prices are sliding -- and the slide is steep. Those who need to sell must reduce the price keenly to make it stand out in a sticky market. In a crisis, fewer are ready to make speculative buys, So brokers only the properties with solid, provent value.

6 SELL PROPERTIES WITH A DIFFERENCE

Property consultancy fIrms warns: the riskiest market is the mono-culture, mono-tenure developments or condos, flats and house-and-lots that all lookk the same. these properties will have a slow go.

7 BE EXTRA CANNY OUTSIDE ASIA

Much lower growth is expected in development countries outside Asia. So the whole game will be about adding value to the property you buy and looking for uplift in value in areas where the government bailouts work first to unfreeze credit. These are areas where prices will increase by five times, at least. This will require a different type of investor with a different type of risk and gearing.

8 CHOOSE YOUR AGENT WELL

Some 70 percent of customers say agents are not helpful when it comes to finng the right house, and 69 percent say they are not professional or good value for money. But a good, well-informed agent can help you go a long way.

9 TARGET THE LUXURY MARKET

If you are at the top end of the market, you're lucky. that's where you are likely to stay, The "uber market", inhabited by global millionaires, has enjoyed a 35 percent increase in the price this year and will continue to be strongest sector next year, with a likely rise of eight percent, analysts say.

10 BUY IN THE COMFORT ZONE

What are the best buy's? Low-cost housing never loses its demand. Another tip-follow the migration routes. Migrating families need homes to stay in. And where there is a demend, prices will tend to stabilize.