For those who know what they are doing and have been in the real estate development industry for a while, real estate investing and development can be a very lucrative business. The developers that are usually making money do so by knowing their immediate market and understanding their market trends. They are familiar with the location and the history of their properties, and they know what new developments are up and coming. They know everything about the area because they take the time to do the research and familiarize themselves with their community.
Some tips that may help a new investor understand the market is to study the current price trends in the area. Find out if the average price is higher in one area versus neighboring areas. Review the price of homes to determine if listing prices in one area are higher than in others. This will help give a better idea of the area with the biggest demand and highest return. As a developer or an investor, you should also be on the look out for the development of infrastructure in an area. If you notice new schools and roads are being built, it could usually mean that the community is growing and investing in these communities usually means a high return on your investment.
Most investors will also warn that buying in an up and coming community could also mean a rise in taxes. It would be wise to call the local tax assessor to find out how taxes are calculated. It would also help to understand at what point or what action may trigger a reassessment in taxes. Most commonly this occurs when a property is transferred and taxes are reassess based on the new assessed value of the property.
Stanley Xu, a real estate developer in Bellevue, Washington, is very familiar with the best practices associated with investing in real estate. Doing the research on an area and a property is key to making an informed decision on the next property you want to invest in. Stanley will utilize local resources to help determine the areas that are currently up and coming. One key takeaway is that in order to be successful in real estate investing, it is important to do the research and thoroughly understand all aspects and risks involved with your next investment. Stanley Xu founded The Longwell Company, a local real estate development and investment firm based in Bellevue, Washington.
To know more visit Stanley Xu WordPress Blog