Tag Archives: fundamentals

10 Basic Investment Rules That Have Kept Investors Out Of Trouble

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I was recently interviewed by Fox Business for my thoughts on what “first time” investors should be doing right now. As the markets are propelled higher by the successive interventions of the Federal Reserve it is hard not to think that the current rise will continue indefinitely. The most common belief is currently that even if the Fed begins to “taper” their purchases the resurgence of economic growth will continue to propel stocks higher even in the face of higher interest rates. The financial world has finally achieved a “utopian” state where there is no longer investment risk in any asset class – because if it stumbles the central banks of the world will be there to catch them

Read more: http://tinyurl.com/lyamkux

Why the focus on the economics of real estate?

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Often times, I have met real estate investors who want to purchase property and have many details covered about the renovations, location, price etc.  However, they consistently miss the single most important factor to succeeding in real estate and that is in understanding the unbiased economic fundamentals.

It is the economics of a region that drives valuations, rents, vacancies, renter profile, transportation etc.  Without an understanding of these important trends, the best property in the world would be ignored because there would be no potential for equity appreciation or cash flow.

The economics should be the first and foremost thing to look at investing in real estate. This will separate you from the speculators who are merely wishing prices to increase.