What we know as ‘home’ is a place of shelter for most people, the location where we enjoy (or not so much) time with loved ones, renovate (or ignore), and are in turn safe. So, imagine the anguish of those for those home buyers who’ve had their investment swept away by water, fire or an unfortunate mixture of both? We should have known better, but sometimes the shine of a neighborhood or the overwhelming overconfidence in a property holds sway. Everyone is entitled to make a few thousand dollar mistakes—as the cost of learning curve goes up, it also goes down.
The problem is that often mistakes are not just “mistakes” but fraudulent. Home owners and scam artists alike genuinely do want to get the most out of property, and the beauty of water environments is not lost on dreamers.
It is very important to recognize the difference between real estate investing and securities, so that mistakes such as securities fraud are not knowingly committed. Remember to only invest in things you know and understand. Investing in individual properties for rental income or even flipping property on the market can clearly benefit investors but with this much risk (what sell-off is next?), it is more difficult to predict which houses will be profitable upon sale.
For those in the know, though, it is a sound investment strategy. The internet is a great marketplace for brokers and renters alike to make bargains and deals so this is one avenue to explore for those who are sick and tired of browsing for houses in their area of choice.
Three Tips for Avoiding Problem Properties
Real estate is a solid long-term investment so there is a big upside waiting for those who can shake off the fear of doing business in today’s down market.
First, which market are you in? Conditions may be ripe for buy and hold in some areas and more risky in others so for those looking a total investment strategy, be sure to investigate all your options.
Next, stay away from having an emotional attachment to the house. Evaluate the purchase on its merits so that things such as water views or proximity to work are irrelevant.
And third, REMEMBER THAT RISK CAN BE FUN. Vacations are also a form of risk and investment, which involve you spending money up front to get to a location, confident in the knowledge that the holiday part of the equation will outweigh the initial spend. Those rides where you take a chance might be worth it in the end, hopefully.