The true value of investment is not defined by the money we put in but by the profit we extract out of that. It is common knowledge today that getting into Real Estate investment property is the safest route to earn profits, if you have the gumption, the resources and the data at hand. The question is how to segregate our expenses and make our home a reselling oracle.
Prominent factor in investment property
The first factor here is whether you are buying an investment property or planning to sell your own home. In the latter case, you will require a minimum of spending on renovations, as the house is already fit to live in (you are living there right!). In the former case, it gives better returns if you buy a ramshackle house in a neat zone (even a suburb).
The best investment
True, the beaten-down house will need apt renovations and the initial purchase as well. Still, if you get a potent buyer, you are sure of a neat profit even if you are a layman at bargaining. The scenario however changes when you buy a house-to-sell at a high cost.
It will then do if you are good with numbers. Make a veritable check of the prevailing selling prices that houses in the area are commanding. Factor them with the renovations you need to make and discern whether there is a profit lurking out for you.
Purchase with discretion
You should assure that the bare house has got the making of a good investment option. People these days hanker after extra bedrooms, neat outdoor living area, a healthy bathroom, swanky kitchen and a small garden on a priority basis. So, if your house is furnished with these or at least has enough space to create them, you have got a good deal.
Heed professional help
Take professional help while negotiating an investment property. Keep on the prowl for distress sellers on your part. The real Estate agents can be of great help here. Check the zones (in the house you have bought) that need serious repairs and those that can do with a slight airbrush. Accordingly, divide your spending budget.
Make intelligent additions
Make subtle additions (awnings, decorated deck, smart blinds; impressive representation of hall area) and the value of your house will increase manifold. The kitchen and bathroom are often the rooms that need most renovations. Innovate into that by making them look appealing without dishing out much money.
Need to be resourceful
Above all, get into property business only if you have the resources to keep your investment on hold. There is no merit in selling your houses at the first proposed price just because you want your liquid money again. You should be in a position to wait for the best time. If there are constructions in the making near your house, you know you are sitting on a golden egg.
Say, an imminent mall, a railway halt or a new connecting road all uplift the market prices of houses. This is a perfect case of waiting and watching!
Which renovations do you find most striking in an investment property?
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