Location, location and location are what is usually associated when searching for property. Everyone is familiar or have heard about the real estate Manchester, which involves the process of selling or buying the properties and even renting of the property. Several individuals are interested in investing in real estate; however, they are turned off as they don’t know much about it.
Investing in real estate does make one of the few ways to gain wealth. However, you cannot become rich overnight. It is a long term strategy and involves a tremendous amount of wealth, but to gain that you need to do your homework first.
No doubt location is the primary aspect that you need to consider before purchasing your first property. Research has shown that many individuals invested in real estate and got into financial trouble. The reason is that they have not purchased the house in the right location and at the right time. So this raises the question of how you are going to find the right location to invest? Click here
There are four cycles involves in the real estate market, and these are Buyers Stage 1, Buyers Stage 2, Sellers Stage 1 and Sellers Stage 2.
Buyers Stage 1
In this stage, there is an:
1. Excess of properties available on the market.
2. Overall decrease in the prices and rents.
3. Unemployment is high
4. New houses are expensive, and sales are stagnant
5. Legal proceedings are at a high rate
This is a declining market, and you need to spend a lot of time shop around to find a good investment because of the unpredictable market. If the local government does not take immediate action, then the market turnaround can face delays, and more cash needs to be taken. So always go for a purchase with a lot of equity and cash flow to minimise risk.
Buyers Stage 2
In this stage the:
1. New construction is low
2. Demand for houses has increased sharply
3. Rent and prices are very low
4. Legal proceedings starts to decrease
5. Employment growth is high
6. Demand for properties is increasing because buyers can handle low prices
In this stage, the local government began to attract new business. This available job opportunity leads to increase in job growth rate. New people looking for properties will drive up the price. In this case, your local economic advisor counsel is a perfect place to look.
Sellers Stage 1
In this stage the:
1. Overall demand for property is high
2. Properties does not stay for long in the market
3. Property taxes are high
4. Unemployment rate is low
This stage is a risky time to invest in the property because you never know how long it takes for stage 2 to occur. So make sure you know all the signs of the next phase so you can get out of the market at the right time.
Sellers Stage 2
In this stage 2 there is an:
1. Increase in supply of properties
2. Market time is increasing
3. New homes construction is increasing
4. Employment rate is slow
5. New real estate investors are entering the market
6. Increase in first-time buyers
One of the best ways to keep an eye on new construction is to check with the local building permits department. You can get lucky in picking up some good deal from the first time real estate investors. So always do your homework before investing in real estate.
Get in touch with Property market Hub for more information.