Investing in the 2010 real estate market is distinguished from markets of 5 years or further back by the rate of return that investors are willing to accept. Previous markets have offered investors annual rates of return (ROR) in the 8 - 10% range. But in 2010, money held in savings accounts, money markets, etc. yield as little as .8% annually. ROR on investments of 5 - 6% may start to look attractive.
Before you accept projects that are showing ROR of 5 - 6% annually be sure that you have projected what will happen to the ROR on that property 7-8 years out if interest rates rise again and future buyers start to demand higher ROR than what your project provides.
