Emerging market investment is the best way for you to make real estate money. This type invests in property that is on the verge of appreciation and holds it until it is time to move. It’s easy, you make money on the appreciation of the property (and possibly some cash flow).
Let me go into a little more detail. To start with, you have to determine the best market for investing in emerging markets real estate. Real estate timing is the key to this. Real estate markets can be analyzed to find out which ones are moving up and which ones are declining. This is no simple task. You can do this best by using a service that gives you the tools. It is important to compare different markets, and then choose those that fit your criteria. Things like strong population growth, high employment, and a desirable locale are good criteria. A new industry could be coming to the region that will help fuel a population boom. Perhaps it is a “newly discovered” resort destination.
Once you have determined the general area, and the appropriate timing of real estate transactions, you will need to determine where in that location you would like to invest your real property assets. Every city, big metropolis, or town is unique. There are many desirable locations, and there are also less desirable ones. You will pay more for a property in desirable locations than you would for one in the less desirable. If you purchase in the most desirable area, you will be paying the highest price and it will be harder to make the cash flow. Although it is easier to cashflow, homes in less desirable areas won’t appreciate as quickly when the market explodes.
It is better to invest your money in the up-and coming areas. These neighborhoods are not as expensive but are growing in popularity. Even though they offer great amenities, the best neighborhoods are not as well established than those that are more desirable. What kind of amenities are you referring? It all depends on who lives in the area. For young professionals, you will need to be within walking distance of restaurants, nightclubs, or other entertainment. These people enjoy getting out and doing things. You will want to live in an area that is family-friendly and has good schools, parks, playgrounds, and low crime.
Let’s take a look at all the steps we have taken thus far.
1. We need to select our emerging market for our real-estate investing. We do this using real estate timing. We select the real estate markets we want to invest by doing real estate analysis.
3. We invest where we feel is best for us.
The next step is to find a property that you would like to purchase. Most people think that investing in emerging market real estate requires you to pay full-price for a property on a market that is rapidly increasing and bring in huge negative cash flow. FALSE! True emerging market investing requires that you invest BEFORE the market starts to take off. The market is slowing down, but you’re buying when it’s up. This means that there are many great deals. It’s not necessary to pay full-price for your property. You want a bargain. Multiple offers should be made on several properties. You must negotiate strongly. It’s a buyers market. Additionally, you should look into value options. You might be the only house in the neighborhood that doesn’t have a garage but you could build one. The baths and kitchen haven’t been updated for 30 years. Now is the time to remodel. The house is ugly, and it has very little gugluhomes. Landscapers can fix this. A down market means that most people won’t spend their money on home improvements as the return is not there. You will get a return if the market moves if your home is bought at the end. You should always focus your investment in emerging market realty.