Supply and demand is influenced by many economic factors, which in turn affects the residential real estate market. Well-located residential real estate will endure fluctuations in the market and continue to appreciate in value.
Another factor while considering Philadelphia investments is your own creativity in managing your investments. Residential real estate is one type of investment that allows for a lot of creativity:
o You can invest for the long term, renting the property to continue to make a profit while waiting to sell at a more favorable time. You can buy a house to fix and resell quickly for profit.
o There are many financing options available for residential real estate, which allow for creativity even more. You also can invest on your own, with the corporation, with a group of associates, or even with the Real Estate Investment Trust (REIT – mutual funds with real property resources or mortgage securities).
o There is an abundant variety of types of residential real estate in which to invest – single-family homes, condominiums, townhouses, and duplexes
The more creative you are in creating and managing your real estate investments, more profitable and successful you will be.
The third factor is knowing how you can use other people's money to your advantage without landing in foreclosure, because so many people now who subscribe to the "get rich quick" scheme during the boom.
You can start with just a few thousand dollars, using other people's money to underwrite the remaining mortgage.