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No person can deny that the U.S. economic structure has weakened in the last 5 or 6 years. Regardless of the economic slow downs, some investors seem to strike it rich making investments whiles others do not. The stock market is a great way to make a lot of money in one day, but real estate is one of the only investments that achieves high growth returns annually. While the average stock market investor earns 3% to 8% each year, many real estate investors are earning 15% to 25% annually. Knowing how to make recession proof real estate investments is how seemingly lucky investors are comfortable profits in an economy that has experienced a severe downgrade.
Recession Proof Investments
Vacation homes are a unique form of a rental property. These homes are just like any other rental property except for one factor. Location. Even when consumer spending is down, average people still find the funds necessary to take vacations and spend time away from a stressful lifestyle. Investors that are buying properties in areas like Jacksonville, FL are profiting from the influx on vactioners, retirees and average people spending time in a warmer climate. Owning a vacation home that can be rented 365 days a year is one of the most recession proof investments that you can ever make.
Single Family Homes
Many apartments, townhomes and condominiums are all designed by the same architects. This means that the exterior, interior design, kitchens, bathrooms and bedrooms are all alike. Families with 2 to 4 children quickly become tired of living in such close quaters and want to branch out into leasing a single family home. A ranch style home that sits on a beautiful piece of property will always be rented faster than an average apartment. Families appreciate the open space that a single family home provides and often take excellent care of the home during their lease agreement. The average familiy leases a single family home for 2 to 4 years making these properties excellent to invest into.
Duplex or Triplex
Homes that can accomodate 4 or more people comfortably make great investments. A large percentage of college students that do not want to stay at a university dormatory prefer to find a duplex or triplex. This shared rent system makes it cost effective for students on budgets and increases the monthly income for investors. Since the average student is away at college between 2 and 4 years, this makes extended lease arrangements possible and guarantees a solid monthly income. There are many duplex and triplex vacancies in popular tourist destinations like Florida.
Selecting Profit Producing Investments
The right research can take a great deal and turn it into decades worth of profit for you. It takes time to understand the real estate market and how to predict trends that affect investment goals. A combination of your personal research mixed with great advice from real estate professionals can help arm you with all of the knowledge that you need to select the highest earning investment properties for your money.