RPC

To say that the property market is uncertain would be the understatement of the century. Are we near the bottom, or are we expecting more significant declines? We now see properties for sale with advertisements touting 10%, 20%, 30% or more below market. But what is the market, and how can we possibly determine fair market value? There is a common thread that runs through all investment markets, be it the stock market, bond market, commodities market and real estate market.

You should avoid these mistakes when calculating the projected rental returns on an investment and should also be on the lookout for anyone else who is making these mistakes when they sell you a property purportedly a great investment. Using Estimates Instead of Actual Numbers. There are actually three different ways I see people using estimations when trying to project returns on an investment property. Related - How to Calculate ROI on Rental Property

Much as we would like to stay objective in our investment dealings, we tend to gets emotional and we can fall sway to charms of owning a property in an area we love or maybe you have always wanted to own a property in that area, at that specific price. It looks perfect. Something about it just pulls you in, and you want to put in your portfolio. You have to make it yours – your dream property fulfilled.

Where are the best property investment locations? If you have enough experience investing in property, you can make money almost anywhere, but there are always places that are better or worse for property investments. For maximum profits, you want places that have a better demand/supply ratio. You can use the points below to identify the locations. The Demand Does the area have decent job growth? Ideally, you want to see job growth equal to or exceeding population growth.

The residential real estate market has pretty much bottomed out and has created a domino effect on the rest of the economy. Look for a full blow recession soon as when the real estate market collapses, so does the rest of the economy. This does not mean that you should not be investing in real estate. Real estate is always a viable investment. A real estate recession is an excuse to buy low and hold on tight until the market rebounds.