Saturday, February 2, 2008

Investing in Real Estate; Building Net Worth has forecast Austin as the number one spot in the nation for investors! It’s impossible to obtain forecasts for Horseshoe Bay; we’re just too small a market today, and very much of a niche/resort area. But our closest metro area, Austin, was once again getting raves from another independent study for economic & real estate growth. Rated #1 in their Lucky 7 forecasts for 2008 are intended for investors willing to take a RISK buying real estate for QUICK PROFIT.

Looking at 250 local housing markets in all 50 states, they are betting on quick profits in these seven markets. They advise being able to handle mortgage payments for longer than the 12 month minimum sometimes suggested. Austin earned the #1 spot because of it’s vibrant economy, growing high tech industry, & booming population.

I initially got interested in real estate as a profession because my husband & I love to remodel houses. What started out as a necessity when we were young & poor became a great way to leverage ourselves into nicer homes & build more equity faster. Because we’ve lived all over the country, rarely staying longer than 5 years in one house, we found some tried & true methods that work for us:

· SET A BUDGET & STICK TO IT! Make sure you get a good inspection so you know what you may come across & allow for the unexpected by at least an additional 10-20%


· DO THE MAJORITY OF THE WORK YOURSELF, if possible; but know when you need to hire the work done by a professional. I've learned not only to strip wallpaper & paint, but to patch dry wall, install lighting fixtures, & set toilets: much of what needs to be done for cosmetic changes only.

· FIND DEPENDABLE CONTRACTORS, recommended by people in the business -- local real estate agents are the perfect source. CHECK REFERENCES!

Studies indicate the majority of America’s wealthiest people make at least the largest portion of their money through investing in real estate. Most investments, however, are for 10 years or longer. Another way to help add to your bottom line is to “slow flip.” By living in a home for a minimum of two years, you have serious tax advantages. Up to $500,000 of profit is tax exempt under most circumstances. Make sure to talk to your CPA about the restrictions.

Horseshoe Bay has many homes in need of remodeling, but prices aren't always indicative of the amount of work needed. If you plan to buy a home to redo, talk to your agent about how much you plan to spend on the remodel & how long to plan to live there before putting it back on the market. Planning is imperative if you expect to make a profit.

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