Investing In St Louis Real Estate

Investing In St Louis Real Estate

Investing in​ St .​
Louis Real Estate
It is​ common for​ investors to​ express uncertainty over their ability to​ manage their portfolios during prolonged periods of​ market volatility .​
But prudent investors understand that making sound investment decisions shouldn’t be based on the​ market’s twists and​ turns .​
Rather, these decisions should stem from an​ understanding of​ investment fundamentals and​ an​ awareness of​ the​ mistakes others have made .​
Keeping a​ few common mistakes in​ mind — and​ steps to​ avoid them —may help you as​ you work toward your goals.
Mistake #1: Maintaining unrealistic expectations
There’s nothing wrong with hoping for​ the​ best from your investments — it’s human nature .​
However, you could encounter serious long-term cash flow problems if​ you base financial plans for​ the​ future on unrealistic assumptions .​
According to​ an​ August 2004 Gallup poll, nearly one third of​ 800 investors surveyed expected to​ generate profits of​ 10% or​ more in​ their portfolios during the​ next year .​
How does that anticipated return compare with actual historical returns? Based on data from Standard & Poor’s and​ the​ Federal Reserve, from 1926 to​ 2003, a​ hypothetical portfolio divided equally among stocks, bonds and​ cash would have had an​ average total return of​ 7.3% annually* .​
While the​ composition of​ your portfolio may be different from the​ portfolio in​ this example, it​ is​ important to​ maintain realistic expectations in​ order to​ have the​ best chance at​ reaching your goals .​
Although past performance is​ no guarantee of​ future results, familiarize yourself with the​ historical performance of​ appropriate investment indexes —or appropriate benchmarks — and​ use their average long-term returns to​ help maintain realistic expectations for​ your own investment returns.
Mistake #2: Chasing hot investments and​ overtrading
Investors tend to​ convince themselves that recent investment performance represents the​ future .​
The problem with chasing today’s winning stocks or​ mutual funds is​ that by the​ time you hear about the​ latest hot performers, you may have already missed out on all or​ most of​ the​ opportunity to​ participate in​ that price appreciation .​
Chasing past winners is​ closely correlated with another potential investment mistake — overtrading .​
Shuffling your investments too often increases the​ chance you’ll buy high and​ sell low — a​ worst-case scenario for​ investment success .​
Overtrading also generates more transaction costs and​ fees that cut into investment gains .​
One potential solution: work with a​ financial advisor .​
An experienced professional may be able to​ help you stay focused on your goals and​ avoid the​ urge to​ trade frequently .​
In fact, studies have found that investors who work with a​ financial advisor tend to​ hold on to​ their investments longer and​ realize better returns than do-it-yourselfers.
Mistake #3: Failing to​ keep your balance
You might be surprised to​ find that strong — or​ weak — returns in​ one area have caused a​ shift in​ your overall investment strategy that could affect your ability to​ reach goals or​ manage risk .​
Work with your financial advisor to​ review your asset allocation once or​ twice a​ year to​ make sure that it​ remains in​ line with your investment objectives.
Of course, investment mistakes do happen, but many are avoidable .​
Learn from the​ missteps of​ others, start applying these lessons to​ your investment strategy and​ make a​ point of​ working with a​ qualified professional.
Leveraging Your Investments
One of​ the​ best vehicles for​ your money is​ real estate .​
In St .​
Louis, we are experiencing an​ average return of​ 9 - 12% .​
Because there was not the​ fast and​ explosive growth that other cities experienced, the​ correction that the​ market is​ undergoing currently will not be nearly as​ volatile and​ will provide a​ much safer investment for​ home buyers .​
St .​
Louis real estate can also be much more affordable that in​ other parts of​ the​ country because it​ enjoys a​ relatively low cost of​ living .​
Many of​ the​ residents who have relocated to​ St .​
Louis have done so because of​ the​ affordability factor .​
Because of​ this, St .​
Louis is​ poised to​ enjoy a​ steady and​ comfortable growth over the​ next 20 years.Then the​ question remains - what to​ look for​ and​ how to​ know what to​ purchase .​
That is​ where you will need the​ experience of​ a​ proven real estate professional who knows the​ market, can demonstrate to​ you a​ proven track record of​ success .​
The real estate process can seem complex and​ daunting but working with an​ experienced agent can make all the​ difference .​
Currently in​ St .​
Louis, the​ downtown neighborhoods are turning over and​ experiencing a​ strong urban renewal .​
Neighborhoods to​ watch include Benton Park, Tower Grove East, and​ Old North St .​

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