Real estate- one of your biggest and proud investments- Finding the right ones and caring!
Almost half the wealthy people around the world, made their wealth by wisely investing in real estate! Not only is real estate a time-proven investment, it is one where the joy and fun of living and owning may far outweigh the return on investment. There is an old adage that you make money going into a deal or buying right. This is not to imply that you blow your profits by acting recklessly at the time of selling. The leverage is higher at the time of buying in terms of percent return by buying at a lower number that is your basis in the investments. This brings us to the basic rules of investing in real estate and improving your ROI or return on investment.
#1. The cardinal rule, Location, location and location is true for more than one reason. A. It has better chance of appreciating with time because demand is better in better areas. B. You may have an edge as having the best school system in town, or proximity to train station, expressway etc. These factors play into retaining the valure of your investments as well as higher gain with time.
#2. Once you have homed in on the best neighborhood or area Buying at the price point where the demand is strong and not the most expensive home in the neighborhood. That would make it harder to resell.
#3. Knowing the features and designs that are in demand. Over the years buyers have moved towards open floor plans that are well lit. Once you buy a home certain features are very hard/expensive if not impractical to change. This includes higher ceilings and one big master room or master bed room on main floor, etc.
#4 While it seems logical that buying without the services of a broker you are saving commission and buying cheaper. 90% of homes are sold through agents for some very good reasons. Avoid the temptation and find the agent that pays for itself by helping with market know-how, comparable property analysis and taking the emotion out of the negotiation…, Here is a good reference article in Money Magazine referenced here.
#5 Shopping for all the services that go into buying or selling real estate make it very important to choose the right real estate agent who can help you with all these services. This will reduce your overall cost of acquisition or divestiture.
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