Real Estate Acquisition Or Liquidation Strategies For 2020
Let’s start with the most likely scenario: 2020 is probably going to be a really good year for real estate, globally. However, there is always the possibility that present positive trends will shift. Here’s what you want to think about: what’s going on where the highest levels of financial spending are taking place? Real estate represents assets of the least liquid type.
This means two things: one, a solid investment truly has a foundation behind it, wordplay intended. Two, if you make a bad investment, you are definitely going to take a loss. In terms of global property forecasts, you want to consider where there is presently a boom, and how far along that boom is in terms of economy. It turns out “bust” markets can make prime investments.
However, there is also this consideration: if you’re savvy in a purchase, you can flip a home for a profit. Here’s an extreme position worth thinking about: Detroit. Detroit has been collapsing like a wet cardboard box in a vat of lava for decades. But it’s probably never going to be a ghost town. It’s centrally located, and there are available resources.
Understanding Why Economically Rough Markets Can Be Good
Though Detroit has taken a dive, wise investors may see an opportunity to “buy low” and “sell high”; the core of success in the stock market. You can get a family home for $5k in Detroit right now. Sure, it’s in a questionable neighborhood, and you’ll probably have to put $20k into it so it’s livable; but if you can sell it for $30k you’re at a profit and can turn that into a downpayment on a home in a better community.
If you don’t believe those numbers, look at this Zillow site. There’s a property that’s $1k and 1,500+ square feet in Detroit. You can’t build a house that cheap. If you can buy a house for $1k and make it truly livable for under $10k, should the economy turn around, you might be able to sell it at a huge profit.
See, this is the strategy of big-ticket developers who travel the world looking for real estate deals. In this way, sometimes the worst economic markets can yield the best profits; but you’re looking at a time investment. The idea is to buy right at the point where the bottom has been achieved, and things are about to turn around. The problem is, you can’t tell the future.
Six Best Overseas Markets: International “Detroit” Countries
With that in mind, here are the six best overseas real estate markets for 2020: Brazil, Belize, Panama, Portugal, Montenegro and Puerto Rico—you can explore this site for a bit more information on each location. Now what do each of those countries have in common? Well, they’re all struggling—kind of like Detroit.
Montenegro isn’t as rough as some of the others on the list, owing to its location and history; but its housing rates are low for the same reason: economic downturn owing to the housing market. If you found a house near foreclosure in Montenegro, and you’ve got the ability to put a few thousand dollars into fixing it up, now could be a great time to pursue such a strategy.
If the global economy keeps surging as it has since America’s recent administration change, there’s a good chance your investment will pay off in the future. For those looking to capitalize on foreclosure, at the following link you can find some key information on how to buy houses in such a scenario.
What To Think About Going Forward
Here’s the takeaway: in communities where property values are high, a buyer may not be able to get the best deals. In Los Angeles, a shack will run you up near a million dollars, and it won’t be in much better condition than some of the properties available super cheap in Detroit. The cost of living there is higher, too. So though property values are greater, you’ll lose more capital buying in such an area.
Property values may be high in Britain, but does that mean they represent a sound investment? Probably not. However, in China, property is dirt-cheap—but you’re also not likely to do too well over there, as the government is a totalitarian regime.
So the bottom line for 2020 is this: be strategic, be bold, and consider communities that have taken a hit. The reality of life is that peaks and valleys come and go like waves. Figure out what rhythm there is in such undulation. Get the balance right and you can buy when things are low, then ride that energy until they’re high again, and you make a profit.
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