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Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

The housing and real estate markets took a tremendous hit in March of 2007. It was the start of one of the worst housing crises in nearly four decades. Actually, it goes back to the days when the industry began tracking housing and real estate numbers. The downfall continued for nearly six years. Now, beginning in late 2012 to today, the markets are showing strong signs of a full recovery.

Investors and the Current Market

Investors are putting money back into the real estate markets. Serious investors realize that this is a great opportunity to sink money into investment properties as housing and real estate prices are showing a gradual increase month over month. Some experts are forecasting record prices and low inventories that are far greater than they were during the mortgage bubble. Most professional real estate investors are putting their money back in the market because prices are steadily increasing and inventories are declining. Seasoned investors realize that real estate prices are ticking up so they are moving in now to take advantage of the prices as of today. The prices of homes and real property will be far higher than the prices that homes are going for today.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Where are Investors Putting their Money?

Investors are looking at remodeling projects and existing homes that need some work that will increase the value of the home. The investor will put together a labor budget that keeps them far away from the actual sales price when they begin the remodel. The remodel is completed in the hopes that the value of the home will exceed the price that they paid for the home. For the most part, investors are looking for homes that need cosmetic work (homes that need very minor repairs) that actually diminished the value of the home. Keep in mind that although values are steadily increasing today, an investor must strike when the iron is hot on remodels and existing homes due to the increasing value of homes.

Time to “Get back in the Game”

If an investor is thinking about investing in real estate or housing today, they should move now instead of sitting and doing nothing. In this case, the investor is pricing themselves out of the market. Of course, it is unintentional, but somewhere in the near future prices will reach a point where the investment is no longer viable. Never sit and wait because the prices appear too high today or have concerns over another possible mortgage bubble. Today, right now, is only the start of the recovery process.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: March 8, 2018 — 4:47 am
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