If you want to pursue your fortune through real estate investments, you have to know where to start, what to look for, and when to buy or invest. While a real estate agent can provide you with some insight, you have to learn some things on your own. For example, knowing when and where real estate booms and expands is huge if you expect to turn a profit. An introductory guide to these real estate insights will help.
When Real Estate Booms
Real estate goes through "boom" and "bust" periods, just like some other investments do. A "boom" in real estate has definitive earmarks for which you have to be a careful observer.
- National economic recovery after a recovery, when lots of new construction gets underway
- Neighborhood recovery projects after a major natural disaster
- Neighborhood rejuvenation projects that turn slums into prime real estate
- Sales of enormous parcels of land via private owners or government agencies
All of the above situations are ideal for starting your real estate investment plans. Buying up these properties before they are "refaced" will make them priceless and turn a profit for you later on.
Where Real Estate Booms
Real estate "booms" always follow the money. Fresh oil discovered in this state or that? You can bet thousands will flock to the area for jobs and they will need housing. Precious metals or gemstones are the same thing. Remember the California and Alaskan gold rushes? Places that were not even towns suddenly became major cities almost overnight. First and foremost in real estate-- follow the money.
Secondly, follow the loss. Major disasters are the second biggest moneymaker in real estate. Why? Because hundreds to thousands of homes and buildings are destroyed. Those that lived and worked in these places need housing, jobs, etc. They will either move away and abandon what was destroyed, making it for sale, or they will need to borrow what they can to rebuild. That is where you can come in as an investor, backing the construction and helping restore the area.
Third, one word--cities. The wealthy live and work in major cities. They want the good real estate, the most expensive real estate, and the cream-of-the-crop real estate. If you can get it before they do, you can sell it to them at an inflated price now or wait until the property is even more valuable and sell it then.