Not unlike the equity markets, there is a difference between investors and traders when it comes to real estate. More often than not, the most successful real estate investors don't seek overnight gains. In fact, the vast majority of the most successful real estate investors look for quality and long term gains.
The prospect of quickly rising home values to deliver overnight riches preoccupy too many home buyers. It is only human to want to create an upside to the largest investment of their lives. Yes, this is certainly possible and there have been many instances where home prices have risen very quickly, enriching flippers of real estate.
However, the vast majority of people who buy a home do so for the long term and in this lies the need to evaluate things from a slightly different perspective. A focus on the quality of the actual real estate, its location, its setting, the quality-of-life it delivers, education options, transportation, etc should be prioritized over potential quick gains. Additional focus should be placed on how to improve a property, thereby creating value that can fuel long term gains.
Long term investors with solid fundamentals in place are mostly rewarded over time. Traders are playing a high stakes game which inevitably imposes high risk. An investment in a home is not just about managing your money; it serves a much more important function, too. It is an investment in your life, solving an essential need: shelter. Most investments such as stocks don't have the capacity to deliver this double-impact return.
Interested in making a real estate investment this summer to reach your goals?
