By Joel Teo
Most people spend their time wondering when the real estate
market is good to enter and purchase real estate based on some
friendís recommendations. Others are more emotional and buy
real estate on their whim and fancy. Such ideas may work
sometimes but are not very reliable indicators on when to
and exit the real estate market. Thus this article highlights
2 step process to analyze your real estate investments.
Firstly, in real estate investing, just like in the stock
market, there is readily available public data, which you can
chart to determine if the real estate boom or bust is
out. Like in any investment, try to purchase the instrument at
the bottom of a cycle so that you gain on the rebound.
Similarly take the rental yield cycle into consideration when
you do your maths to determine whether the property is worth
acquiring since you want to ensure that you have enough
rental to cover your mortgage installments even in the leanest
of rental periods.
The best way to analyze this real estate investment analysis
to look at charts and data with regards to the relevant data.
You can find a list of real estate related data sources at my
You want to look and examine in which part of the real estate
cycle, your prospective real estate property lies in and how
the rentals are doing in your potential real estate
Thus after this analysis, you will know where the pricing of
your real estate investment is heading and plan accordingly.
Secondly, after analyzing statistical data, go down to a real
estate agents office and talk to them and ask them about their
outlook for the real estate investment sector that you are
interested in investing in and ask them for indicators of good
rental yield in terms of location and whether any events or
developments would help to increase rental yields in an area.
If for instance they know that a new business district is
slated for development next to your prospective purchase, you
want to know that too as it would mean a huge jump in price of
acquisition and rental yields and a huge gain in your real
Always spend some time planning what information you want to
get out of the real estate agent before you go down and always
know what type of real estate investment property so that you
can save his and your time when you view properties. After a
while you will get a rough sense of the property prices in an
area and when you see a bargain property investment you will
know itís the right one for you.
In conclusion, we have highlighted two ways to identify a
bargain from your real estate investment in this article.
some time this week looking at your next real estate
deal and perhaps it might turn out to be a bargain.
About The Author: Joel Teo is the owner of several websites
takes a keen interest in real estate investment. For more tips
on real estate investment go to