Am I making a good investment?
Am I making a good investment?
This might be one of the most asked question people find themselves pondering upon before buying real estate. Whether it’s a new home to live in, an office space for business or simply an acre of land for investment purposes.
Every homebuyer wants to make sure they’re getting themselves a good deal before making their purchase. And according to a recent record by Fortune Builders, location and condition of the property are the two key factors in deciding whether it is a good investment or not. So let’s take a closer look at them today:
- Location: Never make an opinion of a property without researching the area and studying the neighbourhood. Does it fit to your needs, convenience and lifestyle? It makes a big impact on a day-to-day basis if you plan on living there, and of course also on the land value for investment purposes. And dangerously, more often than not, our optimistic side chooses to be ignorant of it. But do keep in mind that contrary to the norm, some seemingly rural areas can make great investment property candidates, while some that seems to be exceedingly high in demand might be more bark than bite.
- Condition: To score a great deal on a property, you need to let go of the lofty expectations and the hype surrounding the ‘dream house’ discovery. Small or less attractive homes could provide great investment returns. Buy the ‘worst’ or ‘dreary’ place and slowly renovate it to be your home sweet home. The wallpapered walls or old kitchen appliances won’t kill you, it requires a little long term thinking here to understand the value of the property and location over the value of something so easily replaceable as kitchen countertops. And while checking out the potential of the property, as said by the well-known house inspector Dylan Chalk, ‘always look at the roofline’. It’s the first thing he looks at, saying it can reveal a lot to you on whether the house is sturdy, complicated, simple, elegant, vulnerable or weak. Is it original or has it been added to? Will it drain properly? Roofline reveals, as quoted by the author of ‘The Confident House Hunter’.
Of course, the other main factor as many of you might be thinking, may also very well be the price. But while people like to think that price plays a big role in limiting their options and capabilities, it really isn’t as difficult as it sounds. There are many financing options available today, and learning to take advantage of them through consulting with an expert in the industry is the secret to success of many real estate investors in today’s world.
The bottom line is, in order to make a successful investment we are required to look beyond the style and the physical attributes of a property and concentrate on the potential for future appreciation and also of course, idealizing your future with it.
This also simply means overlooking the fancy houses in the prime location, and instead focusing on the ones that would provide easy opportunities for improvement in the interest of further enhancing the value of the property and land itself.
Picture from Baden Baden’s oldtimers car festival 2017.
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