So you want to get into the Real Estate game, do ya? Looking for your first investment property? Well here are a few tips that will help you make a smart purchase and in turn put money back in your pocket.
A Smart Real Estate Investor ……………………
…Understands the Local Home Pricing
Understanding the local home prices is key to a smart investment. First research comps (recently sold homes) in the area where you want to invest in order to estimate what other homes in the area should sell for, analyze which neighborhoods have homes that are increasing in price the fastest, which neighborhoods are the most desirable, and which have a low crime rate and good schools. All of these are attractive to renters and especially new families with school-aged children. Once you understand the local pricing you will also get a sense if the property you are looking to purchase is priced correctly. If you are working with a real estate agent they should be able to gather all of this information for you.
When looking for an investment property pay attention to the property taxes. If you notice that property taxes are higher in one area or continue to rise and another neighborhood has lower or steady property taxes that neighborhood will be in more demand and thus could be a better buy. Your real estate agent should be able to help gather property tax history for an area for you or you can call the local tax assessor. Also it’s important to note when a reassessment is going to take place because this usually mean a rise in property tax for that area.
…Knows the “Up and Coming” Neighborhoods
It’s every investors dream to snag a property in an “up and coming” neighborhood before everyone jumps on the bandwagon. You could score a property for cheap and be in a desirable spot in town. This all helps not only your rental income but the price of your home when you want to sell. So how do you spot an up and coming neighborhood? Here are just a few signs of up and coming neighborhoods:
These are just a few tips to get you started on your way to success in the real estate game.
D Gees Homes & Realty has the experience, know-how, and infrastructure to offer you great opportunities in your real estate endeavors, whether you need to sell your house, a new rehab project to work on or would like to learn about other options.
Please call us today at 587.800.1213 if you’d like to learn more about the real estate services that we offer.