Prepare To Add Value For Good Return On Investments

Despite the fact that the market has cooled, you can still make money investing in real estate. The key is not to rely on inflating prices to boost the value of your property, but to be prepared to add value. Run down houses, structures that can be readapted for another use and sub-prime neighborhoods beginning to turn around all offer opportunities to make money.

When interest rates rise, the resale value of speculative properties could go down. Investors are better off with small professional buildings, apartments for middle income rentals, or retail space with established tenants. In residential, investments that add real value such as a new master suite, outdoor entertaining areas and modernizing are the best bet.