Millions of Americans lost a quarter of their 401k savings in 2008, according to the Washington Post. This sudden loss of capital has many baby boomers scratching their heads, wondering how they can recoup some of their losses in a hurry. In the past, real estate was always a “safe bet,” since housing values were always climbing and people were always buying. As you know, much has changed over the last couple of years. Even so, if you approach investment properties with a wise business plan and look for the right real estate investment property deal, you can still come out ahead.
One type of profitable investment property is the vacation home market. Many investors look into overseas property where conditions are favorable to American investors. According to the Association of Foreign Investors in Real Estate, a non-profit trade group, some of the best foreign places to invest are safe bets like London, England; Paris, France; Shanghai, China; Tokyo, Japan; Singapore; Munich, Germany; Sydney, Australia; and Hong Kong. The idea with buying investment property overseas is that you must look for location, location, location! Choosing a safe, industrialized city, which sees a good deal of tourism each year is a smart bet. Many investors also like coastal beach properties to rent out as well. According to the editors of Live and Invest Overseas Magazine, the top coastlines to check out are: Veraguas (Panama), the Samana Peninsula (Dominican Republic), the Rocha province (Uruguay), Salinas (Ecuador) and Boracay (Philippines).
Farm properties aren’t the first variety people think of when they imagine “investment properties,” but a number of analysts suggest that now may be the perfect time to invest in land. For one, the United Nations estimates that world population will grow from 6.6 billion to over 9 billion by 2050, which will require more agricultural land for growing food. Of course, this food won’t necessarily be grown state-side, so you’ll need to think bigger. Imagine what else land can be used for — growing plants to make ethanol and farming wind power or solar power, for instance. If this all sounds like conjecture to you, then consider that farmland has only exhibited negative growth three times over the last 100 years — briefly in the thirties, eighties and in 2008. Since farmland dipped last year, there has been a steady rebound in the first quarter of 2009.
Before you purchase investment properties, you may want to take a real estate course to gain all the necessary information to run a successful business venture. Many people jump into investing in real estate head-first, assuming that a steady stream of cash will come pouring in and their obligations are finished once they sign the deal. They later find that they are responsible for repairs to the building, sub-contracting to modernize the structure, securing new tenants, enforcing rent agreements and paying property taxes/business taxes. Taking a real estate specific business course at your local community college or small business association can help prepare you for the challenges that lie ahead.
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