Real estate is one of the safest high return investments that everyone seems to be after. Real estate investments have various schools of thought. These are two of the most common real estate schools of thought.
- School of thought with a lot of analysis
Doing a lot of analysis is one of real estate school of thought talks about. Generally, economic indicators are linked to factors that real estate school of thought advocates studying. Economic indicators are evaluated in many different ways on this real estate school of thought. It takes its cues from how they are expected to perform in the near future and a number of financial indices. Various socio-economic indicators at all levels, global, national and local, are evaluated by this real estate school of thought. It also evaluates things like value of money today, value of money next year, inflation, etc. All these evaluations are used in order to predict how real estate industry is expected to fare in the next few years. So, in order to determine the course of real estate prices, this real estate school of thought tries to determine the buying power of people. ). This real estate school of thought considers various local factors like the unemployment rate, the industrial development in the region, the change in tax policies and any events that might affect the real estate prices in the area when it comes to evaluating the real estate trend with regards to a particular place (i.e. locally). The surrounding areas and the real estate trend in those areas are also considered. So, arch real estate consultants/investors who know a lot about finance follow this real estate school of thought and put all that knowledge to use in determining the trends for real estate industry. That is one of real estate school of thought.
- School of thought that focuses on best deals
On the contrary to the previously explained school of thought, the second school of thought of real estate does not consider all those factors. Real estate is always lucrative at all times and at all places, according to this real estate school of thought. Advocates of real estate school of thought are looking for great deals. Going for public auctions, looking for distress sales and foreclosures, finding motivated seller, rehab and sell, etc., are necessary in this real estate school of thought. So it is basically about taking advantage from the information of the best deals in town and making good profits.
So, according to this real estate school of thought, those are the two real estate schools of thought and following either or both calls for time and effort.