What Makes Real Estate So Profitable? – Eugene Bernshtam
The real estate market is booming, and it doesn’t seem to be slowing down anytime soon. More and more people are moving to big cities, boosting their economies. These cities are then growing outward from their centers, increasing the need for housing. This expanding market has created many business opportunities for investors like Eugene Bernshtam. It’s fairly easy to understand when you look at all the factors that add to success in this investment area. The following will explain what makes real estate so profitable:
Size Matters – The size of your property determines its value. In general, your property should be at least ten times larger than your needs. So if you have a family of five and want to buy a house or condo that’s big enough for everyone, you’ll need something 100 times bigger than what your family is going to use.
Location is Everything – Your location in a major city will determine your property value. You can be two blocks away from a major city’s prime location, and the value of your home will go up considerably. The closer you are to the center of the action, the more your property will be worth. This is why it’s important to consider the location of your property before you buy.
Neighborhood Income – Your neighborhood has an income average that affects your property’s value. If you live in a poor neighborhood, chances are your property won’t be worth much. But if you move to a higher-income neighborhood, your property value will increase because of the surrounding area’s income.
Population Zoom – While the real estate market is booming, be careful about where you buy. If your area’s population is growing at a rate slower than the national average, it’s unwise to invest your money in that area. This is because when new properties are created, there won’t be enough people to fill them up. However, if your neighborhood’s population is growing at a rate faster than the countrywide average, then it might be an interesting investment for you.
Inflation – Inflation is a huge boost that will add to the value of your property. Take advantage of inflation and buy while real estate prices are low. In other words, when people don’t have money, they’re forced to live in poor neighborhoods with little potential for increasing their property values. The more inflation we see in our country, the more people won’t be able to afford their homes, so they’ll have to turn to less expensive neighborhoods. That’s when you should strike and buy properties in that area for a great price.
Price It Right – Selling your property is one of the most important factors in determining is it profitable or not. If you price your property too high, buyers may pass you up for someone else who lowered their prices to get the sale. But if you price too low, your home might sit on the market for weeks and months with no offers coming in at all. Set a fair selling price that will attract buyers while keeping your property profitable.