Three common punches real estate investing can throw

Three common punches real estate investing can throw

There are always going to be bargains, throw aways and special offers which will attract you, pull you in and hold you tight. The path to acquiring the right investment property can be hindered by these situations. “All time low price” and “heavily reduced” are certainly phrases that grab your attention when purchasing real estate but when venturing to secure any new real estate investment you should always consider these key factors.

Don’t part with more than you should

When looking for an investment property, you should always be searching for something that is undervalued… but how do you know whether a property is worth what it’s listed for? 

"Research is the key"

Property is probably the most expensive thing you will buy in your life so you want to make sure you know what you are looking for. A suggestion is to window shop in the suburbs you are interested in so you gain a better idea of market value in that area. The more you shop around the more information you will be armed with when approaching the agent about the property you want to invest in

Set a goal but don’t rush

One of the most common long term goals when purchasing real estate is to sell the property for more than what you originally paid. Quite often market value will increase with age; however, knowing your market will dramatically assist you in knowing when to list the property for sale for maximum profit. 

Making simple upgrades to the home will also escalate the property’s worth. Be careful not to upgrade for what you would like in a home, though. Consider the demands of the market and upgrade accordingly because at the end of the day you aren’t the one buying the property, you’re the one selling it, and broad market appeal is what you are aiming for

Know your Limit

A common pitfall is to purchase a property you can only just afford before realising the work needed requires a budget you now do not have. The point is know how much you can afford! Financial planning is pivotal for your success. Always envisage what the property may need before slapping your money on the table. 

 

Oliver Vialls
Corporate Support
Raine & Horne South Australia