Spring is not only good news for vacationers to gear up for a relaxing holiday. It is the time of the year when real estate investors can take full advantage of the houses flying swiftly off the market. Accounting to almost 40% house sales of the year, spring is the time when home buying kicks off with full fervor striking gold for both sellers and buyers.

Residential Real Estate Investing

Spring 2013 is being regarded as one of the best times to invest in a residential property, as experts speculate a steady rise in home prices by this time next year. The real estate market is looking better than ever in this quarter, and more and more buyers are looking confident to invest in a new home. This is partly because of the small inventory and increased competitions – decent residential properties do not stay in the market for long.

According to official statistics by RedFin, inventory is down to 32 percent as compared to last year and in most of the popular markets in the US, homes get sold within just two weeks of hitting the market. Though new houses are building at a fast pace and the home prices are also set to increase swiftly in the coming year, for now the market is largely in a ‘high velocity’ mode and houses are finding owners in a particularly small amount of time.

While buying and selling has its perks when it comes to investors looking for a steady profit, rentals are also gaining momentum and are being touted by many experts as one of the major money spinners in the coming few years. However, it is important to keep a few basic pointers in check when it comes to investing in residential property with a buy-to-let strategy in mind. A lot of investors who lack experience in this regard often end up with a property that does not yield as many profits as they had anticipated in the beginning.

Whether you are investing in real estate for selling or putting it up to rent, the location of the house should be the key factor in your mind. The locality plays an important part in attracting the right buyers towards your houses, thereby increasing on your returns significantly down the road.

Also, important in this regard is that you do a basic calculation beforehand about how much yearly income you are going to generate through the rent and whether or not it will compensate the overall costs you put in to purchase and maintain the property in the first place.

At the end of the day, residential real estate can prove to be a viable opportunity to invest whether you are buying to sell immediately or put it up on rent. The critical factor in this regard is to choose the right location of the house and ensure that its condition and allure will attract interested buyers and make the investment a win-win opportunity for you.

by, Paul Cook: EquityBuild News Contributor

Source:
Statistics quoted from the report by the National Association of realtors and data collected by RedFin.