Buying your first piece of property, you probably think that you’re buying a home. It’s important that you don’t think of it this way. Instead, think of that new property purely as an investment possibility. We know, you’d like to consider the property the first step to starting a family. Or, perhaps your chance to own something in this world. However, you can not forget that this is the most expensive purchase you will ever make. In fact, you’ll have to take out a loan just to ensure that you can afford it. Looking at it this way, it doesn’t make sense to think of this property as just something you own. You need to consider the future value; you have to look at the bigger picture. That’s not always easy. This is why we’re going to go through the stages of your home, from buying to selling. Only then will you understand that it’s more of an investment rather than a typical purchase. Along the way, we’ll look at some of the other possibilities you can consider for making money off your property.
Buying Your Piece Of Real Estate
The first step is to buy that piece of property in the first place. Right now, if you’re thinking about buying property, you’re probably renting. It’s time for you to climb that property ladder. After all, property is one of the most secure forms of investment.
You need to think carefully about what property you intend to buy. You can either buy a new home or an older one. The advantages of purchasing an older home is that they are often a lot cheaper. They usually have issues that have developed over time that push the price down. We’ll talk about this further down. Essentially, if you buy an old house, you’re purchasing a fixer upper. There’s nothing wrong with this option as long as you know what you’re getting. You need to make sure that the problems aren’t too big for you to handle. If they are, then the property will become a cash drain rather than a solid investment.
The other option is to buy new. Buy new is a brilliant choice but only if you can afford it. We’re not just talking about the first fixed cost either. Don’t forget once you buy; you’ll need to think about mortgage repayments as well. These are often quite expensive for a new property. They are not something you will be able to handle on a small income.
This is one of the reasons why most first buyers tend to purchase an older home. If you’re buying an old home, be sure to take a survey. You need to look out for problems with plumbing, electric, roof and structure. If there are any issues such as this, think twice about buying the property. You’ll be looking at some substantial repair jobs. If your in a big city such as Los Angeles, keep in mind that an electrician or plumber in Los Angeles will likely have seen every possible problem. Give one a call if your feeling a little overwhelmed. Essentially, you need to look for a home with issues that are only aesthetic. They alter the look of the home, rather than the actual practical value.
Finding The Right Property
Now let’s think about buying the property. You should have one idea in mind when choosing a piece of property to purchase. That is resale value. Don’t think about how happy you’d be living there. Think about how easily you could sell it on. It’s okay to buy a home with character as long as the flaws are things other people will forgive. An example would be sun exposure. A lot of homebuyers are looking for a home that gets great exposure from the sun on the garden. You may not be interested in a feature such as this when you buy, but someone else might be. You need to take issues like this into consideration, even if they don’t bother you personally.
Infrastructure is another issue to consider. Are you buying a home in an up and coming area or, in a location that’s slipping down the drain. A good measurement of this is crime statistics. Look online to see what kind of crime stats the area has. If crime is high, this is not the type of location where you want to invest. Ignore the low home prices because when it’s time to resell, the money you save won’t have been worth it.
If you’re buying a new home, one day, you’ll be reselling to a young couple. They might be looking to start a family and therefore want a home in a safe neighbourhood. Even if you don’t have kids when you buy, this is something you need to think about. A cul de sac is the exact type of location young home buyers are looking for.
Living In The Property
Once you’ve found a property you want to invest in, you’ll snatch it off the market. Now, you need to think about how long you’re going to live there. If you buy an older house to fix up, we suggest you aim to move out after the first couple of years. This should give you enough time to get it ready for sale and make a great investment. Fix the major issues first such as dampness or even a presence of asbestos. You must get these problems sorted as quickly as possible. They are the type of factors that will stop a homebuyer even considering a purchase. It could cost quite a lot of money to get the property up to code, but it will be worth it. You’ll avoid any issues with missed sales if you fix these problems now.
After that, you need to focus on the kerb appeal. Chances are, you’ve bought quite a small property. You need to make sure that you accentuate it’s best features with a few tricks. Keeping the garden, short, neat and tidy will make it look bigger. Adding some flowers and shrubbery will allow it to stand out from the rest of the street. Inside, you can repaint the walls and add some modern, stylish furniture. The worst thing you can do is make the home look like it has been inhabited by elderly residents or someone who hasn’t cared for it. This will ensure you only get the lowest offers on the property if any.
Buying a new home is a little different. It’s all about keeping it in the same condition that it was when you bought it. It needs to be well maintained, and you have to avoid any of those major problems we talked about. For a new first home, aim to live there for no more than five years. After that, you can resell at a higher price and move to a bigger place. You must ensure that the property doesn’t start to look dated. This may mean that at some point you have to renovate the kitchen and the bathrooms. If you don’t do this, you’ll find it difficult to compete with newer homes being sold on the market. You’ll be forced to drop your price and lose the investment potential of the property.
The Right Sale
You must carefully consider when the right time would be to sell your property. Keep an eye on the real estate and housing market. You’re looking for signs of a housing bubble. Prices will be high, and there will be plenty of buyers looking to make a purchase. The housing market is constantly shifting and changing. Do not sell your home when prices are dropping, thinking you’ll avoid the floor. Chances are in a few months the housing market will pick up again. An example here would be Brexit. Housing prices are slowly falling right now, dropping away quite nicely. It’s good news for people who are buying without selling a home first. People desperate to sell their home might start to drop their price before the market falls any lower. This is a mistake because all signs point towards a house price crash. That means everyone should be adopting a wait and see approach. After the crash, the market will undoubtedly pick up again, and prices will climb.
When you think the housing market is healthy, speak to an estate agent. You want to avoid a mistake here too. With estate agencies, you get what you pay for. If you pay the bare minimum, you get the bare minimum. You do want to invest in a service offering more than just the basic package of online promotion. Particularly, if your home or property is in a rural area. You could view this page about Taylors estate agency for an example. They offer more than most online dealers.
The dream situation is that your house will sell at a fantastic price in a matter of days. This doesn’t always happen, and if you don’t get offers straight away, you shouldn’t panic. Wait it out for a couple of months. If you’re still not getting offers, you need to evaluate the situation. It might be a case of changing your home presentation. Or, you may have to change to another estate agents if you’re not getting the best presentation.
However, if you’ve taken all our advice on board, you should have no issues selling your home, making a solid profit in the process.
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