Making a residential property investment is one of the biggest purchases you will ever make in your life. Owning a home is no easy-peesy deal. It takes a lot of hard work and not to mention financial resources to get one. That is unless you’ve won the lottery or you happen to be a multi-millionaire of some sort. Regardless, you will have to make sure that you make the right calls and get the best deals. We all want to get the best bang for our buck right? How do you do that? We’ve got some tips for you!
- Buy low and sell high. This is the rule that investors who plan to lease out or to resell properties aim for and that should likewise apply to you even if you don’t have any plans on selling the home in the near future. You never know for sure and it would be best to sell something with a return than with a loss right?
- Know what to look for to initiate a bargain. Sellers and agents will want to sell as high as possible but as a buyer you want to get it at a lower price. Not everyone is open to negotiation so you have to know who to target for a bargaining chip. Your best bet will have to be either properties that have been in the market for long or those that want to sell quickly. They are far more open to negotiations than others.
- Know the neighborhood. This is not merely for purposes of acquaintanceship or location assessment but also as a form of research. Knowing the true value of a home includes having to know the worth of properties surrounding it.
- Always set a budget for yourself. You cannot risk going overboard. Remember that there is more to your expenses than the price tag. There are other hidden costs that you will have to shoulder such as but are not limited to professional fees, survey and examination fees, taxes and other legal costs.
- Always have ongoing costs computed. Many residential property investment buyers fail to consider this and suffer in the process. Such costs pertaining to maintenance and repairs do not surface unless you ask or have the asset checked. Some properties may be priced low at the onset but come with staggering ongoing expenses that will cripple you so check and do your research first.