As the market continues to recover from the recent downturn, six real estate investing trends are making a comeback.
A variety of real estate investing trends are becoming more prominent in today’s market. Among them, are several trends that became popular back in the early 2000s, as they turned big profits for investors. Some might be poised for great gains while others may be a little risky. Which will you engage in?
1. Spec Building
Investors have been making excuses for getting back into speculative building for a while. Some are making mega millions from it. Others are setting themselves up for disappointment and major losses from simply gambling on the future.
2. Land Auctions
Land acquisitions may be the last commodity making a comeback, but industry experts, fund managers and analysts anticipate them to facilitate the largest boom. It can offer low holding costs, fast pay days, and plenty of long term wealth building opportunities.
3. Condo Conversions
As FortuneBuilders predicted, condo conversions are making a sizable comeback, especially in California. Look for this trend to spread across the country, with apartment building owners converting units to condos at an alarming rate. There can be a lot of opportunities to make large profits if done correctly. Just make sure to familiarize yourself with the legalities.
4. Buy High, Sell Higher
Real estate investing pros have done very well for themselves by using sensible investment principals. Accordingly, an appreciating market is great for flipping houses. Some may even see great returns when buying high, but those that demand value upfront will enjoy the most peace of mind.
5. New Construction
New homes and condos have come roaring back and are very popular with foreign investors. They certainly look appealing, but the numbers don’t always stack up to existing stock.
6. Fractional Ownership
Fractional ownership is predicted to continue for quite a while, as international investors expand holdings and remain frugal. For investors, this can also be a great way to blend investing and second home ownership.