subject: Real Estate Advice for First-time Investors [print this page] With the current depressed property market, and bright prospects for a rebound, many people, both young and old, are looking for real estate advice before taking a plunge into this market. Unlike the stock market, where you can test your skills by investing small amounts at first, in the real estate market you have to make a sizeable down payment apart from committing to make regular payments toward the mortgage. However, the profits from investing in good real estate property are also proportionately high.
For the newcomer, real estate investing appears to be full of potential pitfalls. Many do not know how to begin searching for a desirable property, that is, what are the criteria they should list to the agent. Many agents try to palm off large homes with great bathroom and kitchen fixtures. However, if the primary criterion of a good location is not met, these fixtures will not help you to make a profit when you resell the house. When searching for a property, make sure that the location is good. Apart from a clean and safe neighborhood with access to schools and transportation, a well located house should also be well ventilated. Many people now understand the benefits of natural air and sunshine and look for these in a potential home.
As a real estate investor, you need to be handy with the toolkit. As a landlord, the onus will be on you to repair broken pipes and heating equipment. If you do not have the time to do this kind of work, you should know of somebody who will be willing to do the necessary work for a reasonable fee. Once you purchase the property, you need to increase its value by planting shade trees and wind breaks. You can also increase the value of your purchase by installing a solar power system. These fixtures increase the resale and rental value of your property. By keeping these real estate advice tips in mind you should be able to make a great decision.
If you are looking at commercial real estate, again location is the primary criterion for deciding on a property. While residential neighborhoods need to be quiet and peaceful, commercial enterprises thrive in busy locations that are easily accessible. Commercial space with ample reserved car parking will always attract premium tenants and buyers. When you are looking for commercial space, look for properties on or near the business district of your city.
Estate investing advice can be summed up in the single word -- location. While other factors such as the upkeep of the property influence the price you will be willing to pay for it, a property in a bad location should be rejected outright. This is because while a house can be repaired and painted, nothing can be done to change its location. To ensure that there are no long-term changes coming up in the neighborhood, check the local and town planning records for the area. This will alert you to proposed major roads or malls coming up near by.
As a real estate investment entails long-term commitment, you need to see if you will be able to make the same financial commitment for the next few years at least. As most investors in real estate are in it for the long haul, you need to examine the future potential of the investment before you take the plunge. This is all the more essential as suburbs too are bound to be developed rapidly when the economy takes off again. If you are looking for a simple real estate advice it can be summed up in one word - location.
