The housing market is full of negative news, with numbers still sitting at record lows, it’s easy for the media to promote a downturned market. As articles explain how younger people are more apt to rent than buy, this pessimistic attitude is commonplace. However, most of us aren’t listening and keep pushing through. The housing market is still viable, regardless of what new sources want to report. A new Gallup poll shows that the general population still trusts in real estate as their most profitable long-term investment. This number holds higher than stocks, gold, or bonds.
And while the news can keep reporting about how we’ve all sold our homes and ran away, it’s no surprise that people are still looking towards homeownership. Currently, the investor is at an advantage in our market. With prices extremely low, real estate investors can look at making a fortune and expertise on deals that were unheard of 20 or 30 years ago. Additionally, being familiar with your neighborhood and community gives you another advantage. Where stock and bonds are volatile, customizing homes towards the wants and needs of your area, your investment is more worthwhile.
Experts agree that knowing the culture and society of the area you live in, is the key factor to success for any real estate investor today. Those who have bought and sold properties already, know that the safest route is looking right in your own backyard.
While renting out property can become more complicated, it is still a worthy investment. Especially in Detroit, rental properties and quality landlords are in high demand. To weigh out your financial options, always look towards the capitalization rate (“cap rate”). By taking the lowest cap rate, the better you will be when selling a property. When looking at the higher cap rates, the better you will be positioned for buying property. Using this know-how to help you with rental prices can be key.
Make sure to look through all potential properties thoroughly. Examining the condition, median income for the general area, and overall condition of the neighborhood, can be a large factor for your return on investment. Neighborhoods in Detroit are starting to fill back up with tenants and homeowners, flocking to the city for it’s affordable prices. Don’t wait around to miss your opportunity to purchase the best long-term investment. With patience and diligence, you are bound to find that right property that can turn profits for years to come!