4 Pitfalls First-Time Real Estate Investors Can Avoid
Prices might be unbelievably attractive, but the pitfalls of real estate investing are real
By Meg Handley
September 15, 2011
Home prices are expected to continue falling into next year, but according to some real estate experts, that's good news savvy real estate investors can take to the bank.
The glut of foreclosures clogging the housing market has driven down home prices, which are now about 33 percent off their 2006 peak. Even with the recent seasonal uptick, prices are still down 4.1 percent compared to June 2010, making purchasing a home more affordable than ever. Meanwhile, rents have risen in 80 of 82 U.S. markets, according to the latest data from REIS, underscoring the demand for rental properties.
"Prices have come down, you have low borrowing costs on money, you've got good inventory, and you have high demand for the rental pool," says Charlie Young, president and CEO of ERA Real Estate. "From an investor's perspective, this is a great time to get in at a low cost and have high demand for the product."









