St Louis, MO Real Estate Investing

Investing in St Louis Real Estate

 

Prudent investors understand that making sound investment decisions shouldn’t be based on the market’s turns and twists. Rather, these decisions should stem from an understanding of investment fundamentals and an awareness of the mistakes others have made.

Investing in St. Louis Real Estate

Mistake # 1: Maintaining unrealistic expectations

There’s nothing wrong with hoping for the best from your investments– it’s human nature. How does that anticipated return compare with actual historical returns? 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

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. 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 manage or reach goals risk. Once or twice a year to make sure that it remains in line with your investment objectives, work with your financial advisor to review your asset allocation.
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

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. 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.

In St. Louis, we are experiencing an average return of 9 – 12%. Because there was not the explosive and fast 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.

Rather, these decisions should stem from an understanding of investment fundamentals and an awareness of the mistakes others have made. 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.

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