Buying real estate -- either actual properties or publicly traded stocks that own houses, apartments or commercial buildings is a great way to diversify your portfolio. Housing prices
The Right Way To Invest In Real Estate
Buying real estate -- either actual properties or publicly traded stocks that own houses, apartments or commercial buildings is a great way to diversify your portfolio. Housing prices historically are a great long-term investment even though they could fluctuate wildly in the short-term depending on the state of the economy.But with the Federal Reserve likely to keep interest rates on hold for the rest of the year, mortgages should remain fairly affordable for the foreseeable future. The average rate on a 30-year fixed mortgage is 4.17%, according to Freddie Mac.
So where should you begin if you are looking at real estate as an investment and not just a place to live? As cliché as it may sound, you need to follow the number one real estate rule: "Location, Location, Location".
Also, Investors thinking about real estate might want to consider commercial properties as well. Tore Steen, CEO of CrowdStreet, an online commerical real estate investment marketplace, said that investors should look for places with good employment growth.
Places like Nashville, which is going to be the home of a new Amazon (AMZN) operations center that will employ more than 5,000 people as well as a brand new Virgin hotel, and Charlotte, a city that has emerged as a major banking center, are both attractive.
CrowdStreet chief marketing officer Brent Hieggelke added in an interview with CNN Business that investors should look for the types of real estate that can hold up well even in a softer economy.
"What you want is a balanced portfolio. Student housing and senior living centers are both growing demographics that are fairly recession proof," he said.Real estate investment trusts, publicly traded companies that own properties, can also be good bets for conservative investors since they pay lucrative dividends that can help provide stable income -- much like bonds. You dont need to be a billionaire, (or even a millionaire) to be a Real Estate Mogul.
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