Do’s And Dont’s of Investing
Investing in real estate is a massive decision, but also one of the best ways of boosting your financial portfolio and creating secondary income. This quick guide will help you navigate some of the obvious pitfalls for first time investors, minimising stress and maximising your gains.
This seems like a given for most people, but researching the area you are investing in will help you make sound investment decisions. Many buyers choose to invest in an area they are already familiar with, so they are prepared with knowledge of every asset and drawback of the neighbourhood. You can check recently sold properties online to gauge the cost of investing in an area, and research sales statistics and projected periods of growth. Ensure you search the local council site and newspapers for any significant developments or zoning changes which have been planned for the area. This helps you to avoid any nasty surprises once you’ve already signed a contract. In case you are contemplating investing in Cooroibah and do not have much knowledge about it, you can take the guidance of a professional real estate agent.
Don’t: Go Over Budget In the Excitement of The Moment
Once you have considered our finances and the cost of investing in your dream property, it’s critical not to “chase the deal.” Real estate agents often see first time investors pay more than a property is worth because they are too eager to get started and unprepared to wait for the ideal moment. The best advice a first time investor could receive is to know your numbers. This helps you secure the perfect purchase price and prevents mistakes being made under the pressure and excitement of an auction or when negotiating with sellers.
Do: Think About Resale Value
You can estimate resale value when searching for the perfect investment property by considering which factors are going to boost appeal. Attractive facets of investment properties include a second bed or lockup garage, as well as good access to local shops, schools and infrastructure. Resale value is also impacted by the rental returns and capital growth of a neighbourhood. If you are living in the area you’ve chosen to invest in, remember that it’s still important to research the local property market and how it’s projected to perform in the future. It’s even more critical to do enough research if you’re buying out of area.
Don’t: Go High Maintenance
While lockable garages and extra bedrooms or toilets can boost the value of a property, beware that some assets may seem attractive but actually inhibit desirability. Investors should consider carefully if they are looking at a property with a pool or extensive landscaping. While these can be beautiful, they are high maintenance for owners and landlords and can end up costing more than they are worth in some cases. This narrows the pool of buyers willing to invest. Also be aware when investing in older houses that these can be more prone to maintenance needs and require extra upkeep.
Do: Allow Extra Room In Your Budget
Knowing your numbers well also means allowing a little room for error. The cost of investing in property isn’t taken lightly, and everyone wants to get it right the first time. A mishap in real estate could lead to you being pushed out of the market completely. Allowing some wiggle room for unanticipated events can save the skin of some investors. Calculate what you need and then allow an extra little margin.
Don’t: Be Impatient
The luxury of going with a ‘gut feeling’ may not always apply in real life. The smartest way to move forward often means waiting for the numbers to make sense. Some investors will only view two or three properties in their local neighbourhood before making a decision.By not allowing enough time for a good deal to come along, it’s likely they’ll end up paying more for a property than it’s actually worth. Viewing investment properties in a few different areas helps you get a better understanding of what properties are worth.
Final Thoughts On Do’s And Dont’s
Make sure you see what’s out there and go for an investment which is going to move you towards your financial goals. Getting qualified advice is a great way to minimise your risks and help you find your dream property. An experienced real estate agent is the best person to help you decide whether investing in real estate in Cooroibah is a worthwhile decision or not.
Information taken from https://www.forbes.com/sites/forbesrealestatecouncil/2017/08/14/how-to-ensure-your-first-investment-property-isnt-a-bust/#220c760b642f
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