Is it Safe to Invest in Real Estate Again?

Just a few years back during the real estate boom, flipping homes and investing in residential real estate was all the rage - until the bubble burst and buyers nearly became an endangered species. But new data show that real estate investors are becoming more active in the market, as evidenced by survey results from online real estate firm Move, Inc. released in late spring.

The survey found that investors will be more active in their local markets and outnumber typical homebuyers by three to one over the next 24 months, and 69 percent of investors say it will be easier to find properties in the near future. Additionally, 62 percent of investors are paying more attention to home values in their local markets, with only approximately 43 percent indicating it will be harder to find bargains in the next six months. Twenty-seven percent of investor respondents said they'll purchase a primary residence as a first-time buyer as their first real estate investment, and nearly half plan to live in their investment property until it's sold or turned into a rental.

"This survey suggests that many first-time buyers may be looking at investing as a strategy to becoming homeowners," says Julie Reynolds, vice president of Move, Inc. "It also suggests that the dream of homeownership is alive for millions who are keeping their eye on the future and using their initial home as the first in a series of what may become many investments in real estate."

"If you plan to live in the house for the long-term, the potential for your home to rise significantly in value after a few years is there," says Philip Tesoriero, broker/owner of Exceptional Homes Real Estate in Massapequa, N.Y. "If you're planning to flip, don't expect to be able to turn it around immediately at a high profit. If you can buy and hold for the long-term, you're far ahead of the game."