Real estate is hot, and if you are interested in investing in property in this market, you may not have the luxury of time when a good property hits the market. Unless you understand how to know if you are making a good real estate investment and purchase them quickly, you will always lose potential properties to your competition.
Location Is Key
Whether you are going to rent or resell the property, you need one in a good location. For residential property, choose a property near good schools, popular attractions, or shopping and dining options. If you plan to rent your investment to vacationers, you will need a property that is close to the beach. If you plan to invest in commercial real estate, choose the property that is near main streets or is highly visible to the public. Property that is tucked away out of site is going to be difficult to lease because businesses want visibility.
Consider the Condition
Before you walk away from a run down house that has been on the market for several months, take a closer look at the condition. Are there any structural flaws, or are most of the damage cosmetic and superficial? Broken windows, a weathered roof, and outdated carpet can all be fixed if the price of the home is low enough. This type of fixer-upper can make a great real estate investment, provided you have the funds available to make the necessary changes. Other investors may pass over this property because of the poor curb appeal, but a little bit of money and elbow grease can make the home attractive again for resale or rental.
Choose an Appealing Property
When you are investing, do not buy the “unique” house in the neighborhood. You may find it difficult to find tenants or a buyer for the property when you are done fixing and updating it. Choose a home that will appeal to the average vacationer or family, and leave the unique properties to buyers with eclectic taste.
The View Counts
Johnathon Brooks, an analyst with Wealth Stake, dives in, “A good view offers many breathtaking views, and a home with a view is a big selling point for both renters and buyers. If a home looks to be a solid investment, affordable price, and also has a great view, take it!” However, do not always buy a property just for its view. If the discounts are not enough to make it a good investment, let someone else have it and keep looking. There are plenty properties to choose from worldwide.
Good Potential for Resale
Even if you are planning to lease the property after you buy it, make sure there is a good potential for resale before making the purchase. If your situation should change and renting out the property is no longer part of your investment plan, you will need a way out. Research sales of similar homes in the area to see if there is a market for the home you are considering. If there is, it is a good investment property. If not, look for a similar property in another area. By taking the time to learn these tips, you will be able to find potentially profitable properties, make a move, and seal the deal before your competition.