Tips for Ace Investment in Real Estate
Are you looking for investment in real estate? Though not as lucrative as it once was, there are still many people interested in putting their money into a rental property. If you’re one of those people, then these tips will help you figure out what kind of real estate to invest in and how to make the most of your investment.
Keep in mind that there are many factors to take into consideration. Prioritize your options, decide what’s most important to you, and proceed from there.
· 1) Location – This is the number one priority for most people because who would want to live or do business where it’s unsafe or unpleasant? Even if you plan on eventually selling the property, location will matter far more when you actually do sell it so check out the neighborhood thoroughly before investing!
· 2) Condition – Things like plumbing, appliances, electrical wiring, foundation, roofing material — these should all be taken into account when looking at a house/apartment. Make sure everything works! If something needs repairing, get an estimate on how much it will cost to fix. If you have no experience in home repair, then at the very least get advice from someone who does. Also, if one tenant moves out and you find that the carpet needs replacing but aren’t sure what other kinds of flooring there are, hire a company to come in and do an assessment for others interested in renting out the space.
· 3) Price – How much can you afford to pay? This depends on your personal financial situation which is different for everyone. Of course, there’s also what buyers are willing to pay for similar homes in the area. This should be easy enough since several real estate websites let you search based on location or even offer easy-to-understand graphs so you can see when the property value has increased, decreased, or stayed the same over time.
· 4) Tenants – Can you screen potential tenants? If so, is it worth your time and effort to do so? Or should you leave that up to a property management company? These are things to carefully consider before buying any rental property.
· 5) Maintenance – What kind of upkeep does this place require? When is the roof expected to need repairs? Is there an alarm system in place for security purposes? How often will landscaping have to be performed between tenants–or by yourself if you choose not to hire outside help? The more questions you can answer beforehand, the better.
· 6) Termite inspections – Many buyers try to pass this off onto a property management company or forget about it entirely but that’s a huge risk! Treat getting this done as the normal course of due diligence and it should turn out fine.
· 7) Insurance – What is your liability? Are these risks you can afford to take by yourself in case anything goes wrong? If not, what insurance coverage do you need to look into? You’d be surprised how important proper insurance can be when it comes time for you to sell the place. Don’t forget: even if something doesn’t happen during your ownership, such as flood damage, it will need to be covered if it ever does.
· 8) Renovations – If you plan on renovating the property before renting or selling, then get all of your estimates and expenditures in before starting work. On the other hand, if you’re not planning any renovations and just want a nice place to live/have guests over, don’t bother! It’s worth spending the extra money to do some updating instead of simply repainting every time a tenant moves out.
Purchase properties near institutions or important locations
It’s a fact that cities grow around important locations like hospitals, schools, universities, parks, etc. So if you find prospective housing projects near such institutions or places frequented by a large number of people (for example malls), invest because demand would be high for this kind of property due to its location advantage.
Go for projects with amenities like swimming pools and clubhouses
Many people would rather buy homes with amenities like swimming pools and clubhouses. This is because it gives them a luxurious feel to their properties compared to those that don’t have these things. So, if you want to price your property higher, make sure it has these features built-in.
Buy in areas where residential standards are high
You’d also want to invest in projects which are up to the standard of government guidelines for development or building new homes. This way, you can be certain that the housing project is run by honest and capable people and your investment money will not be wasted due to negligence or poor management on anybody’s part.
Diversify the location of your real estate pieces
This is especially important if you can’t afford to buy all your real estate pieces in the same city/area. It’s advisable to invest in separate cities so that if one falls under recession, others can help shoulder some of the loss.
Invest with companies that have a good financial track record
Speak to their auditors or check for information online before investing in a company that is developing rental property for you. Whatever you do, don’t be overly enthusiastic by believing promises made on brochures and prospectuses because it will be just an empty promise and there’s no guarantee anything will happen as promised after a few years.
Are you looking for investment in real estate? Though not as lucrative as it once was, there are still many people interested in putting their money into a rental property. If you’re one of those people, then these tips will help you figure out what kind of real estate to invest in and how to…