Investing in real estate is complex involving various scenarios and situations that can decimate your results, contrary to the high returns you are looking for from a long-term property investment. This is especially true for first-time investors. So even though the returns may appear rosy you need to proceed with caution. Take note of these expert tips to help you make your decision.
Experts from any property appraisal service will tell you that location is very important when deciding where to put your money. It is location that will see your property value rise in the long term. If the location of the property offers good public transport access and has direct city access it will hold a lot of value. Those properties next to the beach will always rise in value. The condition and price of any home can be changed but the one thing you cannot change is the home’s location. Location creates desirability, desirability creates demand, and demand raises real estate prices.
Employment Creates Demand
If you purchase a property that sits in a growing job market you can assured the value of the property will rise in years to come. Proximity to local employment opportunities is a very high priority for most employment-age buyers. As more people come to work in that area, it would mean more renters. If you notice a large corporation setting up its base in the area it would mean more migration. College towns are now also a viable option as there is the steady flow of students needing off-campus housing.
Insurance is one detail you must not overlook because once you discover you’ve improperly insured one or all of your real estate holdings, it’s usually too late! In a commercial real estate appraisal, an expert appraiser will surely consider this! These are additional costs that corrode your bottom line returns. Though you don’t want to invest in areas where you cannot get insurance, like floodplains or possible proximity to natural disasters you must do your research with your insurance agent to determine the risks of claims that might exist and if you can get coverage at all. Then, invest!
People must invest keeping in mind how the area is expected to progress. For example, is a new airport in the pipeline? Find out the developments plans and consider whether they will positively or negatively impact the property you want to invest in. A neighbourhood in the early stages of gentrification might result in a faster and higher appreciation for your investment property. In a commercial real estate appraisal, appraisers take this factor into account.
Generate rental increases
You can generate rental increases in order to decrease the hold costs in a long term property investment. So even if a property is in poor condition buy it and invest in renovating it, if you think this can be done, It can become a cash cow in future, achieving a much higher rent than when you initially purchased it, more so if its sits in a prime location.
Invest at a young age
It is never too late to begin investing and planning for the future, but the sooner the better. This is true in real estate, as buying a house, an apartment or whatever other type of property you’re looking for can bear much fruit if you invest wisely in your 20s. Owning a house rather than renting is often a good way to save money and set yourself up with a valuable asset in the future. However, renting it out can be even better as it’s a guaranteed source of income that can pay off your mortgage while also earning you some extra money on top.
Contact RD Clifford Associates
For quality full-service valuation and real estate property appraisal services in New Jersey, New York, and Pennsylvania, contact RD Clifford Associates, Inc. The company has been providing quality appraisal services to multi-industry clients and cross-disciplines in New Jersey, New York, and Pennsylvania. Their core focus is providing appraisals and valuations for Commercial and Residential Real Estate, also for Machinery & Equipment Assets, Settlement Valuations for Divorce and Estates as well as Independent Business Valuations primarily in the north-eastern USA.