Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Many people have gotten wealthy by investing in real estate. No matter which niche of real estate investing you get into, a crucial skill is identifying which properties are good investments and which ones are bad investments. The following contributed post is therefore entitled, How to Know if a Property is a Good Investment or Not.
* * *
If you want to buy a property, then there are a lot of different things that you need to think about. You need to think about the location of the property, the condition of it and even the price. Only when you have been able to take all of this into consideration, can you then begin to really make sure that the property is the right one for you.
Know the Numbers
Unless something catastrophic happens between the time your offer is accepted, and when you close, there isn’t a single reason why your loan shouldn’t go through. Before you start searching online, you have to make sure that you speak with a mortgage lender. You also need to make sure that you know what you can qualify for, and even how much you are spending on a monthly basis. When you do this, you can then begin to make good decisions that won’t impact your finances too much.
Location
Sure, it’s great when you can buy a huge family home for a very affordable price. If the location isn’t right however then you shouldn’t even look into it as an option. Location is such a huge factor when you are choosing your property. Remember that you can change almost any aspect of the home, whether it involves adding an extra bedroom or even converting the loft to get extra space, but you can never pick up the home and move it somewhere else. If you can’t seem to find a great location then look into the properties that Drew Fasy has to offer.
https://www.pexels.com/home-real-estate-106399/
Extra Cost
When buyers are working hard to try and set up their budget, they remember to account for things such as insurance payments, tax and even their mortgage. You might not remember to account for things like gas, cable or even electric however and this can really impact your budget. You also need to take into account things like landscaping and property maintenance. You can minimise this cost by working hard to find a property that needs very little improvement, therefore saving you some money. That being said, some hidden costs just can’t be avoided. And while there can be aspects of a property that don’t require many changes, this gives you scope to put your stamp on it, either through exterior renovation or curb appeal alterations, or giving the outside of the property a minuscule makeover, you don’t necessarily have to invest much.
https://www.pexels.com/photo/blue-and-gray-concrete-house-with-attic-during-twilight-186077/
Compromise
If finding the perfect property means going over budget, then you really do need to reconsider. This is especially the case if you can find a property that is near enough exactly what you want for a significantly lower price. Sometimes compromises need to be made because if you don’t then you may end up overspending on something that really isn’t worth that much money. By being smart with your money, you can be sure to really help yourself and you can also do your finances a favour too.
So, there are plenty of ways for you to really make the most out of your investment, and by putting in the work you can be sure to find a property that suits your needs. The internet is a fantastic place for you to start when you doing your property research, so don’t be afraid to compare neighbourhoods online.
