1) The best way to invest will always be through direct ownership. You have total control and get to make all the decisions including if, when and to whom you would like to rent. When an investment is done correctly, you can expect an 18-23% average annual return. Simply having 3-5 quality properties will be more than enough for most people.
2) Avoid publicly offered partnerships. There can be internal fees, poor decisions made by the general partners and a lack of tax benefits all making this relationship unattractive.
3) Leave house-flipping to the professionals. After watching one too many HG-TV episodes, there are way too many people trying this. Good buys are tough to find in a good market though. House flipping also requires an emotional detachment which can be difficult for most of us.
4) Stay away from time shares. Most people feel buyer's remorse after they become owners.
5) Real Estate Investment Trusts can be good if you do your research and take time to study the market.
6) Unless you are quite savvy and know the real estate cycle in your area, vacation properties might prove to be a poor idea. Speak to our team first (www.Suncoasthome.com) to let you know the rental history of specific buildings and units so you can make a wise decision.
7) Your own home is not really an investment unless you know when to buy and sell regardless of personal situation at the time.