What drives real estate prices is location. Don’tmake the mistake of investing in high-priced metropolitan areas, in the hopethat prices will shoot up higher here. In fact appreciation in these places willbe low. A thumb rule to follow is that your investment per square foot shoulddouble in five years. And that’s unlikely to happen in an already high-pricedarea. If you are not certain of your money doubling in five years, you’d bebetter of putting investing in a small savings scheme or in a mutual fund.
Higher The Price, Lower The Gains
We often assume that a plot of land that is high-priced is a more attractive investment opportunity than a lower-priced one. Not true. For you should remember that as prices soar, the appreciation slows down. It’s likely that development of real estate in that particular area is saturated, and hence there is very little scope for further appreciation. So when buying land, always look at the potential for appreciation, not just the price of the land
We often assume that a plot of land that is high-priced is a more attractive investment opportunity than a lower-priced one. Not true. For you should remember that as prices soar, the appreciation slows down. It’s likely that development of real estate in that particular area is saturated, and hence there is very little scope for further appreciation. So when buying land, always look at the potential for appreciation, not just the price of the land
To help you stay safe and secure online, we've developed the all new Yahoo! Security Centre.
No comments:
Post a Comment