Real Estate Investing

Before a house sells, a buyer has to see the potential it offers for a profitable investment or a cozy, happy family life. And, of course, to see the potential a buyer has to get into the home in the first place. So how does a seller accomplish this? We’ve talked about Internet marketing and the importance of photographs, but which photographs are the must-haves?

There are certain photographs that speak volumes with their absence. These include the kitchen, bath and yard. People draw conclusions about your home (and whether or not they want to tour it) based not only on what you include, but what you don’t include.

Tight yard shot? Must be a tiny space. All exterior shots? The house must need a ton of work or even be partially unfinished. No bathroom or kitchen photo? Must be terribly small and outdated. And of course, if any of your pictures are dark, blurry, or far away, don’t even waste your time posting them. Hire a professional photographer if you must, but be sure to include ample and flattering pictures of key spots such as the kitchen, bath and yard if you want to secure a more positive image and more visitors to your property.

CNN Money had an interesting article speculating that the residential real estate market will finally begin correcting itself toward the end of next year. While this bit of info may seem a bit depressing, there are some bright spots around the country.

Mobile, Alabama is an unexpected leader in the up-and-comers, with a boon of new construction “mega-projects,” according to the article. Austin, Texas is another city that is thriving in the midst of the surrounding storm. Texas as a whole is faring relatively well, thanks in large part to its developing reputation as the vacation/retirement spot d’jour. But Austin is faring particularly well, with a large white-collar, high-tech, well-educated population minus the astronomical housing prices that typically go hand-in-hand with such a culture. Austin’s median single family home prices are expected to increase 4.7 percent over the next two years, however, from about $185,000 to $195,000.

And of course, Austin and Mobile were both on the list we recently featured of 10 U.S. Cities People are Watching. So if you live in one of these cities, don’t hang your head, but jump for joy. Or consider investing in real estate in some up and coming areas of town now and capitalize in a few years. You can also invest farther away from the city with the expectation that commuters and commerce will migrate outward.

Commercial real estate is faring much better than residential real estate these days. Many investors have turned their attentions toward that segment of the market in the hopes of maintaining a profit during slow times. However, those planning to invest in commercial real estate should identify which sectors are the healthiest.

Office property prices are up about 13 percent over the last year. The worst performance was seen among apartment complexes, with a 1.3-percent dip over the last year despite small rallies in July and August. This may be tied in part to parents’ increasing willingness to invest in student housing for their college students.

Retail is by far the strongest aspect of the commercial real estate market, with 10 percent gain on the year, according to the S&P Index. While all real estate is somewhat shaky investment-wise at the moment, commercial property certainly seems to be the stronger of investment options.