8 WAYS TO RIDE THE WAVE OF NEW HOME CONSTRUCTION MARKET TO PROFIT

8 WAYS TO RIDE THE WAVE OF NEW HOME CONSTRUCTION  MARKET TO PROFIT

Despite the recent collapse of the real estate market and the attendant havoc it wrought on the US economy, real estate is still an IDEAL investment: Here is the acronym for IDEAL.

I- Income

D - Depreciation

E- Equity

A- Appreciation

L- leverage

With the low level of real estate inventory, residential new construction has become the norm rather than  the exception. After years of virtual inactivity on the housing construction front, the pace of new construction has accelerated over the past 9 months.

As a Realtor, hardly a week passes by without being invited to a Realtor Luncheon. These luncheons are organized by Agents on behalf of builders to introduce their new products to Agents. These events are normally catered by some of the famous chefs in Atlanta.

I would encourage investors as well as buyers, especially move up buyers to consider new construction.

Here are the 10 Reasons Why:

1. The activity of the hedge fund companies in entering the rental  estate market has helped accelerate the increase in rental rates

2. With new construction, there is low maintenance on the rental property and they are normally guaranteed from one to ten years.

3. There is a huge pool of renters as a result of the dearth of inventory resulting in the increase of rental rates.

4. The tightened standards and the numerous federal policies has made it difficult for buyers to qualify for mortgages.

5. The current low mortgage rates makes investment properties very profitable

6. It is advisable to know your exit strategy - when to sell or exit out of your investment

7. Know how to harvest all the advantages inherent in investment property ownership

8. In this current market builders are giving out a lot of incentives for potential buyers.