Australia has seen growth and in terms of population, and the level of living; this means the application for a real estate is quickly increasing. Real estate investors have made millions investing in the Australian real estate market. A person can elect to be a passive real estate investor and just wait till the right time to sell or one can elect to invest in property, develop it and once the value is right, sell the property for a profit (this is what billionaires like Donald Trump do).
There are two real estate investing terms that are widely used in the US and are now common the world over, the first term is ‘Flipping’. Flipping basically means buying and selling properties in a very short duration of time. A real estate investor buys properties and holds on to them for a brief period of time, the moment prices go up either at the first sign of profit, the investor sells the properties, there’s no development of properties involved and the only objective is making a quick profit. Flipping requires considerable knowledge of the real estate market as one has to be confident of selling the property at a profit in a small period of time. Flipping does require liquid cash, however, there is no long term investment, a person can quite literally buy one day and sell the next.
A diametrically opposite approach to flipping is speculating. Real estate speculators (much like stock exchange speculators) are investors that buy properties and then hold on to them. A speculator’s objective isn’t immediate gain and it can take several years before a real estate investor sees profits on real estate he is ‘speculating’ about. The number of speculators has increased over a period of time with commercial loans becoming much simpler to get and with the reduction of interest rates. Also, speculators can choose to invest further in their real estate and to enhance its value by making improvements. However, it isn’t still necessary to make improvements to the property if one is speculating.
Option charts real time
To put it in perspective, let us say a real estate investor buys an old house for $50, 000. Flipping would mean selling the house at a profit during the first opportune moment for $55, 000. In contrast, a true real estate developer would buy the house for $50, 000, spend an additional amount of 10, 000 in improvements and then wait to sell the property for a much greater profit, however this might mean the speculator will hold on to the property for years, but the profit margin involved will be far higher.
The best services have a decent track record. That said do not get too caught up in a track record because some services may fake their track record. Bottom-line is that the philosophy behind the service must make sense and must meet common sense. In other words their approach to capturing trading profits must make sense. Ultimately, if you like what you see, the best test will be to respond to a trial and paper trade their service. Don’t use real money but pretend like you are trading in real time with real money.
If you don’t want to invest too much money in real estate or you wish to build up your capital slowly then the best solution is flipping. The downside of flipping is that it requires considerable know how of the market to know which property’s value will appreciate in the near future. If you’re looking to make long term investments then choose to speculate.
Another important pointer to a potential market is looking at inventory trends. Inventory trends basically mean the number of properties that are up for sale in a vicinity, if the number of properties for sale is low in a given area, then chances are there’s going to be a greater demand for real estate. Similarly it is essential to do the investigation into the market you’re investing in; you should check the economic growth, the population charts and also the overall welfare of the market. The most successful real estate investors on the planet still do their homework before they invest in any real estate market. Also remember that dead markets shouldn’t be written off all together, larger investments can help make money in dead markets too.