What is this property going to be purchased for? Is it your primary residence? Will this investment property be used as a vacation home, business property, or rental home?
Consider this, if this home is your primary residence, you will want to take the time in getting to know the school districts this property feeds into. This will go a long way to help you invest in a property that is among a community that is sought after.
Homes located within great school districts stay in demand and their value will increase at a greater rate than homes that do not.
Read Also:
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- How to Beat the Competition in a Hot Housing Market
- The Importance of Knowing Value of Your Property
- Things to Avoid When Investing in Real Estate
- Reasons to Invest in Real Estate
The Urge to Purchase Is Strong But Is It Worth It?
You are feeling the urge and are finally ready to make that commitment to invest in your new property.
You have worked hard; the time has come but what indicators do you have that this is the right property for your investment? It is a large purchase requiring time to research all the pros and come.
Looking at this particular property from several different angles will help you come to the decision to know what is best for you and whether this property is worth the investment.
Growth Potential
Does this investment property have that “IT” factor? You know, the one where we can gain some assurance that this property will grow in value.
If this property is a parcel of land, check with your county’s tax office and find out if the tax burden on this property has increased over time and to what extent.
This will give you some insight on how the value of the area has grown and what future growth for your investment may look like.
Accessibility to Potential Investment Property
Wouldn’t it be nice to purchase 10 acres of residential land in an undeveloped area to only luck out and learn that in the next 2-3 years that area is destined to go commercial?
While this is wishful thinking for many of us, purchasing land that has good accessibility to major thoroughfares and municipalities as well as schools or parks certainly will help increase the value of your investment.
Property Condition
An independent home inspector can be a great help to help you. They will help reassure you by making you aware of the condition of the property you are considering investing in.
Sometimes, a home may have problems that go unnoticed that could cost you a lot of money and aggravation. A good, independent home inspector can alleviate some of those headaches.
In addition to a home inspection, you can also walk the surrounding area and talk with your potential new neighbors.
Neighbors who have lived in the immediate area are excellent resources to learn all you can about the property you are considering investing in.
They can advise you on their experiences with the quality of construction of the home if you happen to be looking at a home in a subdivision that was built by the same home building company.
The neighbors can also let you know if the property you are interested in has recently been flooded or had any other natural disasters affecting it. Home insurance will give you peace of mind, find out more at MSIG.
Job Security
Money may or may not be an issue for you but if paying for this investment will rely on you having a job then you will want to examine your job security.
Currently, we are all in the middle of a pandemic so making sure all is well with your finances and job could be a critical component with deciding to purchase or not.
The time may seem right to invest since interest rates are low and inventory on properties to purchase seems high.
However, if your job could disappear and you could be in a position where you cannot pay your loan then no property is worth the investment.
Budget
Along with job security, having the budget to afford the investment must be examined. No one wants to invest in a property only to lose the property because they cannot afford it.
If you are looking at a commercial property for example, you would want to make sure you could also afford to pay for the insurance on that commercial property.
Also, be sure to do your research on where that property is located. Some counties charge hefty property taxes on properties that fall within their jurisdictions.
Living near city centers can cost you an arm and a leg just for the privilege of owning property near that city center. Talking with a financial advisor is another resource for you.
You have done your homework, you have been looking for a while to find a property you can invest in, you found that property that spoke your name and now you’re ready to make your move.
Give yourself some credit that you have done your absolute best to prepare yourself to make the best decision for you. At the end of the day, that is all any of us can really do. Enjoy your investment.
