Tips to Consider when Investing in Real Estate

With economic and housing market stabilization underway in many metropolitan areas, investors are becoming increasingly interested in the real estate market again. The abundance of available housing at rock bottom prices makes this an appealing time to boost property holdings. Markets such as the Tampa Bay area have seen an increase of both seasoned and new real estate investors interested in taking advantage of our developing city.

If you are considering a real estate investment, there are many details you will need to take into account. Here are a few tips to help in your property investment decision:

Weigh the rewards and risks –Investing in real estate carries great potential for wealth. However, such opportunities rarely come without making difficult decisions. Before investing, consider your options. Are you qualified to handle evictions, time management, repairs, reinvesting into the property, and keeping up with documentations and inspections on your own? If the demand seems too much, are you willing to employ the assistance of real estate professionals to address your property management requests? Weigh the rewards and risks to decide how to receive the best return for your investment.

Consider your location - Be sure to target markets where you can buy low and add value over time. Do your own thorough research to ensure that you are making an informed business decision. Stay away from hot, over hyped, over competitive markets. In hot markets, often times you may have already missed the boat and are buying high.

Have a sizable down payment – Investors are more scrutinized than ever by banks, and financing can pose much more of a challenge than it may have been in years past. According to Bankrate.com, mortgage insurance won’t cover investment properties, so you will need at least 20 percent down to secure traditional financing for your investment. Cash is king and making a substantial down payment, or even a full cash purchase, gives you instant equity in your investment.

Do your best in ensure positive cash flow – Being unprepared for a property that may swallow cash every month can quickly reduce the amount of capital you have to work with. Predicting constant appreciate is never easy. Lack of due diligence places a painful strain on your investment income and may force you to sell your investment before the full benefits are discovered. However, with market knowledge and the assistance of seasoned real estate professionals, you can take the necessary steps to ensure positive return on your investment.

To learn more about investing in the Tampa real estate market, please visit www.SIRealEstateInvestments.com

Tampa Bay - A Destination to Watch in 2010

USA Today recently released an article naming the “Destinations to watch in 2010”, and guess which booming metropolitan hub made the list? With its vastly expanding cultural and entertainment offerings, thriving business environment, swiftly stabilizing real estate market and its well-connected location to the rest of the U.S., 2010 is expected to be a banner year in Tampa Bay.

Tampa Bay has continued to grow towards being one of Florida’s top business and leisure destinations, while gaining significant recognition on both national and international levels. New developments slotted for the bustling city in 2010 include the addition of Busch Garden’s newest theme park, the opening of a new children’s museum, and the finalization of the Tampa Museum of Art’s newest downtown facility, providing visitors with even more reasons to explore the Bay area.

Foreign and national real estate investors are taking note in Tampa’s bright economic future as they search for the best buys in the Bay area. While the local housing market is quickly moving towards stability, there are still great deals available for investors looking to expand upon their real estate portfolio. Clearly, with so much positive movement already underway, it’s not hard to see why Tampa Bay is going to be a destination to watch in 2010.

New Study Finds that International Investors Plan to Buy More Real Estate

Individuals with more than $800,000 to invest are poised to increase their property holdings, with real estate investments among wealthy individuals set to rise to 30 percent over the next few years, according to a survey covered by Bloomberg report. This recent global survey was conducted by the major global financial services provider Barclays and revealed several interesting statics regarding international real estate investing in the current market conditions.

Investors foresee better long-term returns on property investments than from bonds and stocks. Three out of four investors surveyed said that residential real estate is looking attractive and two thirds of investors are interested in exploring commercial real estate investments, according to the study’s findings.

The survey showed that the U.S. was the most attractive real estate market for investors outside their home country, with many investors believing that it is the country with the highest potential for return on investment. Many sunny parts of the U.S. such as Florida continue to be seen as very attractive investments for buyers.

Investors from Canada and the Persian Gulf were reported to be the most likely to increase their property allocations. Interestingly, the study revealed that about 30 percent of British and Indian investors have more than half their wealth placed in real estate.

In the current real estate market it is important for buyers interested in building their real estate investment portfolio not to try and time the bottom of the market. If you may be trying to wait for the last 5 to 10 percent of downside that is expected to come in the first half of 2010, any potential savings may be offset by higher mortgage rates.

Tampa Real Estate Update –Throughout Tampa Bay Home Sales See Best October in Four Years

Tampa Bay home sales had their best October in four years! According to recent data from the Florida Association of Realtors real estate sales in Hillsborough, Pinellas, Pasco, and Hernando counties totaled 2,758 in October, the month’s highest sales number since October 2005. This excellent progress in the Tampa Bay real estate market is largely attributed to first-time buyers purchasing sharply discounted homes while taking advantage of the $8,000 first-time home buyer tax credit.

However, this positive rise was not restricted to the Tampa Bay area. According to an article from the St. Petersburg Times, all 19 Florida metro areas reported year-over-year gains in home sales. This greater number of home buyers was also seen nationally with interest and activity increasing throughout the country. Foreclosure and pre-foreclosure homes made up close to half of all sales in October.

In addition to the activity from the first-time home buyers, Florida has also seen a great deal of recent interest from foreign real estate investors. Florida currently leads the country in the amount of international buyers, accounting for nearly a quarter of foreign home buying activity, according to MSNBC.com.

These foreign investors are turning to the Florida real estate market in search of vacation homes and rental properties, drawn to the sunshine and low priced homes. While these foreign buyers love floor-level prices, they are also confident in the housing market resurgence and a long-term recovery of the U.S. economy. This confidence has helped drive sales.

Throughout Tampa Bay we have witnessed an increase of interest from Canadian, Russian, European and South American investors looking to pick up the best deals before they are gone. Between these foreign investors and first-time home buyers, housing market activity continues to make a steady move upward.

Tampa Bay Real Estate Market Forecast - Home Sales Expected to Increase

Over the past few weeks many news sources have released predictions for strong real estate stabilization in 2010. A recent article from NuWire credited the expansion and extension of the first time home buyer tax credit for the predicted stabilization and home sales increase. According to NuWire recent article, “Home Sales to Increase in 2010”:

"After more than a three year downturn in the hardest hit areas of the nation, some markets have experienced slight rebounds, prompted by the first time buyers' tax incentive and low mortgage rates. But higher price ranges have been hindered in their recovery. However, momentum should gain strength in the second half of the year with expected improvements in mortgage lending and make strides towards stabilizing in 2010.

A series of interest rate cuts taking mortgage rates to near historic lows are one of the Fed's attempts to re-stimulate the housing market. But record foreclosures are producing a market that threatens to keep home prices at low levels for years to come. More than 19-million vacant homes sit empty in the U.S., much of which is an inventory that will have to be absorbed by home buyers before markets fully stabilize.

Still, signs of a recovery in housing are showing promise. As we maintained last year in our annual national forecast, improving conditions, however, do not signify that housing inflation or appreciation will develop in most areas for a number of years. The recovery will be a long haul."

Tampa’s real estate recovery is underway. We have seen signs of real estate market stabilization throughout Tampa Bay, with appropriately priced Tampa homes spending fewer days on market, multiple offers being placed by first-time buyers and foreign investors, and sharply discounted homes being quickly absorbed.

We have even seen an increase in interest from Tampa home owners who were previously unable to sell their homes, now more interested in listing their property for sale. It surely is going to be a long haul but with positive signs becoming more and more prevalent, we are sure looking forward to what 2010 may have in store for the real estate market!

NAR Predicts a Positive Real Estate Start to the New Year | 2010 to See an Even Stronger Market Stabilization

“Home sales will increase 15 percent to about 5.7 million units in 2010” stated the National Association of Realtors Chief Economist Lawrence Yun late last week during the 2009 NAR Conference and Expo. Yun credits the popular first-time home buyer tax credit for the surge of home sales in the market, with the expectation that the extension to the program will continue to drive an increase in real estate sales.

NAR reported that this year’s first-time home buyer tax credit brought 400,000 first-time buyers into the national real estate market who may not have purchased a home otherwise. The incentive was successful in driving home sales throughout the U.S. The influx of buyers tightened the inventory of starter homes and helped reduce the fear shared by many current homeowners and sellers of continued price drops.

According to the NAR, this positive cycle is expected to continue into 2010 with the extension and expansion of the tax credit, which includes a new credit for repeat buyers and an increase in the income limitations. The tightening inventory at all price points will help improve the real estate market performance by bringing supply into better balance with demand.

New home sales, which make up approximately 10 percent of the market, is expected to continue at somewhat suppressed levels - about 550,000 units, mainly due to builders scaling projects back because financing has not been readily available. However, it is predicted that new home sales will see more of an increase in 2010 then they did this year, with signs of stabilization continuing in the market.

Featured Property of the Week - 5637 16th St, St. Petersburg FL 33703

Recently listed by SI Real Estate Investments, this beautifully remodeled 4BR/2BA St. Petersburg home with attached garage will not last long. The single family home is situated on a large corner lot and has been fully renovated to include spectacular upgrades such as hard wood floors throughout, fresh interior paint, designer lighting and ceiling fans, and newly installed roof.

The upgrades in the kitchen of this St. Petersburg home are spectacular. With brand new 42” cabinets, new countertops, new ceramic tile flooring, and high-end stainless steel appliances, this spacious gourmet kitchen is a dream. Attention was paid to every detail in order to make this home shine.

Additional home features include formal living room, family room, open floor plan, ample closets throughout, master suite with walk-in closet and attached private mater bathroom, covered patio, fenced backyard and mature landscaping. There is also an area in the back of the home with additional parking room for a boat or RV.

New home owners will be able to walk to bus lines, shopping and great schools. The house is conveniently located in the quiet neighborhood of North Euclid in North St. Petersburg, just minutes from downtown St. Pete and the award winning beaches of Pinellas County. Commute to South Tampa, MacDill Air Force Base, and Tampa International Airport in less than 30 minutes.

Currently listed at $179,000, this home is not a short sale and can close quickly, with buyer motivated and willing to offer concessions, including allowance for new exterior paint. The property is both FHA and VA approved and the seller will include home warranty to the new owner.

View other SI Real Estate property listings at http://www.blogger.com/www.SIRealEstateInvestments.com