What determines the price of property in real estate? What properties are best suited for investment?
Posted on July 22nd, 2010 in Investing | 4 Comments »
Ecka asked:
How do I minimize the risks involved in buying real estate as an investment?
Real Estate Listings For Sale
How do I minimize the risks involved in buying real estate as an investment?
Real Estate Listings For Sale
4 Responses
Redding CA Real Estate
Location, Location, Location!
Redding CA Real Estate
Much of the value of property is its location and zoning. In fact zoning is the one greatest factor in assessing the value of a piece of property. Farms which are conducive for development into building lots will have just the value of farm land without zoning changes. Once the acreage is rezoned the value will jump three to fivefold. Other sites which are zoned industrial have great potential as investment properties. If one wishes to minimize risk, his return will be less than investment in a property which requires development.
Micro dermabrasion
It determines by the lowest price the seller is will to sell and the highest price the buyer is will to pay. It is the common point between these 2 parties. And the price both parties will to offer is determine by location, comparable recent transactions and emotions.
The best investment properties are condos. It is easiest to buy and sell comparing to co-ops and houses. And it easiest to rent out comparing to co-ops (board restriction) and houses. Low maintenance cost comparing to houses.
minimize risk -
don’t over leverage
find quality properties in good location
find properties easy to rent out.
Mar vista real estate
As any homeowner will tell you, a home or building begins depreciating the moment construction is complete.
Land is a fixed quantity and it is demand for the underlying land that drives real estate prices.
If people want to live, work or play in a particular area, demand for the land will rise. If people don’t want to live, work or play in a particular area, demand will fall.
The cost of building a 2,000 sqft single family home in an interior area of northern Michigan is not much different from the cost of building the exact same home on a waterfront lot in Palm Beach, Florida. What makes the 2,000 square foot home sell for $180K in northern Michigan while the same home in Palm Beach, Florida sells for $20,000,000 is the cost of the underlying land and that cost is based on the demand.
Charlie Camp
Atlantic Mortgage
Satellite Beach, FL