Buying a property to call your own is a huge step forward in anyone’s life. It is a huge expense at the start, then it grows into a huge responsibility that eventually grows into love.
Property is something you can make into a home or you can make into an investment or a business. If you are going for a stable place to live and enjoy for a few years there are some things you need to keep in mind. You need to know about any faults, flaws, or building or structural mistakes that are too expensive or too difficult to repair, that is considered a deal breaker. If you are looking for a property that you can make into an investment you also need to consider all that and even more.
Today as you can see, we will focus on the business side of things and we will tell you how you can easily find out if the property you are aiming at can be a very good investment. With the help of ironfish.com.au and some research, we managed to gather some things up and sum them up nicely for you. If you want to find out more keep reading till the end.
In the real-estate business, there is always someone who has got some sort of an amazing deal you need to come and check and invest your money. With these, there is a 50/50 chance that it will be an amazing deal or an amazing bottomless pit that will eat all your hard-earned cash. To avoid these bottomless pits full of gremlins you need to know some things!
First thing first, never take anyone’s word for it. The fact that we will have people close to us, friends and family, people that work with us and others alike telling you about good deals, and a good investment, does not mean you have to take their word for it and be lazy. People will like when you succeed and your success will be something that will joy them, as long it is not bigger and better than their own. Keep that in mind. From a seasoned realtor and investor, advice is to never jump into an investment before you do your sniffing around. Laziness will kill you financially and believing people all the time will not bring you any good as well. Ask around, go check that property by yourself and that is enough of an intro to get you a general picture of what is going on. You may see some flaws and additional expenses or you may confirm what has been told to you. whatever the case is you are not going in blind into this deal.
The other thing you can do as well as scout other properties in the neighbourhood that have sold recently. This will give you an insight into the prices you can expect to be real, it will show you the type of people you can aim to sell or rent that property and most importantly it will show the worth of that real estate at that spot in the current condition. From there you will see if it is a good deal, does it and how much renovation, investing and updating it needs to be at the level of neighbouring homes if it already isn’t and the end math is clear. You will give yourself the info you need to form a price that will tell you if the real estate will bring you money or if it will cost you more than it’s worth.
If you don’t like walking around, asking questions and doing all this leg work and research you can also rely on C.M.A or Comparable Market Analysis. In the US there are several different systems you can utilize to check your property against others alike. Now some mistakes can be made in C.M.A as well especially if your realtor makes a wrong comparison. This is why you also need to do your comparison just in case. Realtors tend to wrongly compare properties in some cases where your property that is, let’s say 2000 sq. ft. to a property that is 5000 sq. ft down the road and that bigger property will falsely inflate the price of the one you are buying. This is why C.M.A is good but also needs to be put against your research and sniffing around to get the best appraisal possible.
When the realtor or the C.M.A spits out the results all you have to do is stack them next to each other and ask a bunch of questions. When they are all stacked you will see some anomalies and you can drop the ones that have those. In the end, what is left is comparable properties that can give you more answers. After looking at the results you can ask “why is this one so different from the others?” the answers will help you see where your property stacks against all others and this final thing will give you the clearest picture of the value of that property. Now if you are looking for a quick sell then you don’t have to consider future prices, but if you will do some renovations and if you are going to turn it around in a half year to a year then you also need to consider some factors that will impact the sale price down the line.
At the end of the day, this one is all about you, your money and your time. If you have info about a property that is too good to pass do your due diligence and research to see. Never jump on the first ball and never trust people and their word for it.
Your money, your time, and your investment after all your responsibility. So, if you don’t have a trusty realtor that operates the way you want and the way you do, you will have to rely on yourself first and others after that.
There is a lot of money to be made in real estate but only if you are careful, experienced and if you are willing to do some leg work and get your hands dirty.