During the good times, we hear of people striking it rich and earning huge big profits from real estate investment. In fact, going into property was one of the in-things and getting real estate leads were not in the least difficult. In fact, real estate investment was known as one of the biggest income earner for a lot of savvy investors. However, now times are really bad. People are losing their jobs. Income is plunging. Property prices are plunging. Affordability is also plunging. Even as these go down, bad debts increased. Many houses were repossessed due to unpaid mortgages. People were left literally homeless as their financiers swoop in and take their homes to reclaim the monies they owed.
Many naysayers are warning investors to be smart and to stay away from risky investments including the real estate industry where plunging prices and less affordability teamed together would mean less buyers. Although there are sellers aplenty, there is really no point amassing the properties when you can sell any of the properties now. Then all your funds will be tied to the properties and you can't use it for other uses. While there are other property investors who thinks they can still make a profit from real estate by buying the properties cheap and then waiting for the housing industry to recover, you can only do this if you have the extra funds that you do not need.
Of course, you could always purchase properties cheap due to the plunging market conditions now and then rent it out for some monthly income. To go into the buy-to-let industry, you will need a different set of skills and conditions. You will need to check the suitability of the property and the area so that you will be able to find tenants easily. Most importantly, you will need to know if there are a lot of demand for rented properties in the area before purchasing the property or else it would be a total waste of time and money. Just imagine purchasing a property with the intention to earn monthly income by renting it out and you later find out that there is no market for it. Or that there is no demand for rented properties in the area. Or that the area is simply too far from amenities like public transportation for people to consider staying there. Or that it is just too far from the business district or any schools. Whatever the reasons, it is always best to do a market research before buying a property with the intention to buy-to-let.
Even when you make a property investment with the intention to rent it out, you will need to get good real estate leads and in such a market conditions as now, it may not be easy at all. So, you will also need to work doubly hard to get tenants for your property so that you could make monthly profits from real estate. The global recession has caused the real estate investment business to plunge so it is always wise to be careful when investing in property.