Now's A Good Time For Houston Investment Property
Low Cost Opportunities
Although current property climate in the US is not so encouraging for short term investors; with shrewd planning one can still manage to reap profits.
Tourist destinations have always been money churning machines. In fact, when deciding on the right investment for short term, the parameter to keep in mind today is location. Places like Houston and Las Vegas hardly have any off-season and are thronged by tourists all around the year, thus pushing up the property prices. The way to go today is to cash in on the lower off-plan prices. They are invariably a more profitable deal than investing in completed projects of similar scale and locations. An extension of this strategy is to "flip" Houston investment property, where the units are sold off before their completion. The profit making opportunity occurs because of rise in value of the unit as the project nears completion. Now to successfully employ this strategy one needs to clarify the re-assignment rules of the property before finalizing the deal. Certain owners charge a percentage of the purchase price as a fee for allowing re-assignment of property.
Know When to Buy
A lot of easy payment options are available in the market today. The investor can payoff in certain pre-decided installments. Another scheme is to take a token amount at the beginning and rest of the payment after completion of the Houston investment property project. The scope of profit is increased if investment is made early in the project life cycle. This way the investor gets to choose the most attractive unit in the project.
Assess Risk
Investors should take steps to contain the risk of their investment. They should evaluate each opportunity on certain set parameters like appearance, location, facilities; and choose the one with maximum potential.
Before entering any deal, the foremost step to take should be deciding the exit strategy. Investors need to formulate a plan to liquidate their holdings as and when they want. In case a buyer is not found till the completion of property; investors should have a back-up plan.
Payback
In spite of the impending economic recovery, the market is still not very profitable in the short run. The long-term story is entirely different, Houston property rates are expected to boom after a few years and coupled with rising rent rates this forms a brilliant money making opportunity. To add on to the benefits, one can lap up one of the profitable ventures in the pre-release stage, thereby ensuring a discounted pricing.
Although current property climate in the US is not so encouraging for short term investors; with shrewd planning one can still manage to reap profits.
Tourist destinations have always been money churning machines. In fact, when deciding on the right investment for short term, the parameter to keep in mind today is location. Places like Houston and Las Vegas hardly have any off-season and are thronged by tourists all around the year, thus pushing up the property prices. The way to go today is to cash in on the lower off-plan prices. They are invariably a more profitable deal than investing in completed projects of similar scale and locations. An extension of this strategy is to "flip" Houston investment property, where the units are sold off before their completion. The profit making opportunity occurs because of rise in value of the unit as the project nears completion. Now to successfully employ this strategy one needs to clarify the re-assignment rules of the property before finalizing the deal. Certain owners charge a percentage of the purchase price as a fee for allowing re-assignment of property.
Know When to Buy
A lot of easy payment options are available in the market today. The investor can payoff in certain pre-decided installments. Another scheme is to take a token amount at the beginning and rest of the payment after completion of the Houston investment property project. The scope of profit is increased if investment is made early in the project life cycle. This way the investor gets to choose the most attractive unit in the project.
Assess Risk
Investors should take steps to contain the risk of their investment. They should evaluate each opportunity on certain set parameters like appearance, location, facilities; and choose the one with maximum potential.
Before entering any deal, the foremost step to take should be deciding the exit strategy. Investors need to formulate a plan to liquidate their holdings as and when they want. In case a buyer is not found till the completion of property; investors should have a back-up plan.
Payback
In spite of the impending economic recovery, the market is still not very profitable in the short run. The long-term story is entirely different, Houston property rates are expected to boom after a few years and coupled with rising rent rates this forms a brilliant money making opportunity. To add on to the benefits, one can lap up one of the profitable ventures in the pre-release stage, thereby ensuring a discounted pricing.
About the Author:
Duke Morgan enjoys sharing what he's learned about investment property passive income especially with people interested in Houston rental locations.
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