Considering Investment Property


In 1978’s Superman: The Movie, Lex Luthor explains to his moll Miss Tessmacher that, although stocks, bonds, banks, and governments may fail, people “will always need land and will pay through the nose for it” as the motivating reason for his master passion. Of course, nobody is as obsessive as Lex Luthor was on the subject, but his words in the movie do reflect an essential truth: land will always be valuable.

Property As Investment Opportunity

Property has always been regarded as a prime investment opportunity. If someone had some inside information about a future large construction project and could anticipate purchases by the builders, that person could snap up seemingly worthless land cheap and turn it into a huge profit selling it to the interests behind the pending project. People have long looked to land as a long-term investment, knowing that, after a number of years, eventual suburban or industrial expansion makes any property a very valuable asset.

Of course, ordinary residential or commercial property in an established market area is bound to pay off quite profitably in the long run. Except for the extraordinary occurrence of a market bubble or a sudden crash, property values are most likely to continue on an upward curve, increasing at a steady rate over the course of time. It is easy to see that property as an investment is a near certain wealth builder.

Gauging The Market

Investing in property is like making any other investment since the wise buyer must understand the market. A number of factors can enter into making one property a better prospect in terms of portfolio building than another. These factors would include anticipated growth, the local infrastructure, a profile of the local employment picture, proximity to amenities and businesses, and the overall social vibrancy of the area. In combination, these conditions make a huge difference on anticipated Return On Investment (ROI) for a given property in a given locality.

Finding a broker who understands these factors is the vital first step in making a wise choice in purchasing for investment. The savvy broker knows how to research the market, future anticipated demand, and provide the best solution for the client for achieving the maximum yield over time. In choosing a property broker, clients should be certain that the agent’s experience is equal to the challenge of finding sound investments to fit particular needs.