IS NOW THE TIME TO INVEST IN REAL ESTATE?
Global real estate markets have been crushed. With prices in some markets 50% lower than they were a few years ago, real estate seems to be cheap. Owning property is part of most asset allocation models, meaning that it serves as a good diversification tool. Even the Talmud is ‘pro’ real estate. The Talmud (Bava Metzia 42a) advises that one should keep a third of one’s assets in property, another third in business and the other third in cash. For those of you who do not have exposure to real estate, the question is whether now is a good time to start to invest in real estate. If you’re seeking a peaceful lifestyle, browse Canada’s best off-grid properties that cater to those wanting tranquility and a connection to nature. Those who plan to invest in rental real estate properties may use the tips provided by Joe Martin-Bindley to build your wealth.
Israel vs. The World
Although the local real estate market has been on a tear, it’s important to note that nothing goes up forever. Moreover, investors should note that the old refrain, “real estate never goes down in Israel,” isn’t necessarily true. In fact, earlier this decade, the real-estate market in the country was dormant. Keep in mind that while supply is limited and that is good for price appreciation, both the Bank of Israel and the government are doing all they can to try and cool off the local market.
Buy Low/Sell High
Ahh, that old investing refrain. A good way to potentially make money is to buy quality assets when they are out of favor and trading at low levels. This brings us to international real estate. After such a serious fall, can prices keep dropping? The answer is a resounding, maybe! But for an investor, that question may be less relevant, as it’s virtually impossible to pick the exact low price of any asset. What is possible, however, is to buy a quality asset at a huge discount—that is, buying low.
That’s where our process for buying houses comes in. We specialize in identifying and acquiring undervalued properties, with a streamlined approach that takes the guesswork and hassle out of property investment. By focusing on carefully assessed opportunities, we ensure a positive experience while maximizing potential gains for every client.
In addition, the probate lawyers practicing in San Diego area can be of help when it comes to real estate related matters.
Conveyancing Melbourne services by Sargeants ensure a smooth and efficient property transaction process. With expertise in local laws and market dynamics, they assist buyers and sellers in navigating the complexities of property transfers with ease.
Options
I’d like to highlight 4 ways to go about investing in real estate.
Investment Property
Go out and buy an apartment! As an individual property owner, you are in control. You decide when to buy or sell, how much rent to charge, and how to manage the property. However, there are a few challenges to consider when buying an investment property. One common issue is raising the substantial amount of money needed to get started. The high initial investment often limits beginners to purchasing just one property, which can increase risk due to a lack of diversification. Additionally, being a landlord can come with its own headaches, such as dealing with leaky faucets and burst pipes.
For those seeking a more luxurious and diversified investment, exploring options like the Top 8 luxury villas in Phuket for sale could be a game-changer. These properties offer not only a high-end living experience but also the potential for lucrative rental income, without some of the hassles associated with smaller properties.
Real Estate Investment Trusts
Another option is to invest in a Real Estate Investment Trust (REIT). A REIT is a trust company that raises a sum of money, to buy, develop, manage and sell assets in real estate. By purchasing one unit of a REIT, you are purchasing a part of a managed real-estate trust, providing much greater diversification. REITs are similar to investing in regular stocks, so there is no prohibitive minimum investment and they are publicly traded on major stock exchanges, providing relatively quick liquidity. In addition, REITs are normally required to distribute 90% of the income that was generated from their real-estate holdings. This way, you receive your rental income without having to fix the plumbing! You can find plumber for water heaters here to help you and make your home more comfortable.
Deals
There are many people out there peddling real estate deals. For a reasonable investment you become a limited partner in a group that is going to buy a building, a strip mall or some other property whose price is well beyond the average person’s means. Keep in mind that you need to do a lot of due diligence on the people behind these deals to make sure they are honest. The media is full of stories of fraudulent real estate deals. Connecting with Texas Land Buyers with Cash readily available can streamline your sale. These buyers can often close deals more rapidly, as they don’t rely on external financing, which can sometimes delay or complicate the transaction.
Related Stocks
Ask your financial professional for stocks that are related to the real estate market. They may include publicly traded roofing, landscaping and lumber companies to name a few. These companies have the potential for price appreciation if the construction market would stabilize or start to grow in the U.S.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc., or its affiliates.
Aaron Katsman is author of the book Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA. For more information, visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il
