Common Characteristics of a Good Real Estate Investment

Do you want to be in good hands with your real estate investment? Then make sure to be on a look out for the following characteristics:

1. No fixed maturity Unlike a bond which has a fixed maturity date, an equity real estate investment does not normally mature. In Europe, it is not uncommon for investors to hold property for over 100 years. This attribute of real estate allows an owner to buy a property, execute a business plan, then dispose of the property whenever appropriate. An exception to this characteristic is an investment in fixed-term debt; by definition a mortgage would have a fixed maturity. Source: Investopedia

2. Long-term desirability – While a flaw is important, the property also needs to be desirable. This is how you leverage the work that you did to improve it. Desirable properties don’t have to be on Rodeo Drive in Beverly Hills, though. Just about any property can be desirable. It just needs to be appropriate for its area and slightly better than the average in just one small way. Having something that makes it stand out increases buyer or tenant interest, making it easier for you to sell or lease out.

Finding a long-term desirable property also means actively avoiding undesirable investment properties. Four bedroom houses with one bathroom are an example of this. Another example is a property in a rough area that’s getting worse. Source: Trust Deed Capital

3. The ability to spot trends – As with investing in the stock market, investing in real estate requires the ability to notice changes in trends and act upon them. Look at cities like Las Vegas in the 60s for example. What once was a dusty desert became Sin City almost overnight, and millions of people flooded there for their vacations. Imagine how much profit was made by those who got in on the ground.

This is not a one time thing. Houston Texas is becoming a major tech capital of the world, and money is flooding into the city. There are many opportunities that present themselves for those with the foresight to see them. Source: Addicted2Success

Ian Klepsch – Duncan BC Realtor
2610 Beverly St Duncan, BC V9L 5C7‎
+1 855-710-0011