On the surface, real estate business seems simple selling and buying of properties. When you actually get involved in realty investments, only then you come to realize how intriguing the real estate business is. For first-time investors particularly, it can be quite overwhelming.
Experienced investors target long term benefits instead of one-time equity profit. Thus, it becomes a handy takeaway for new investors. But for that, they also need to know how to cover taxes, property utility & maintenance costs with these long term benefits.
Following actionable tips will help first-timers in this context and in making more profitable real estate investment.
Be Aware of the Current Market
In most real estate markets of the US, house and rent prices are increasing. Availability too has become a big concern these days. As an investor, you must be aware of the current state of the market to make a more informed real estate investment.
House prices are increasingly becoming unaffordable in Colorado, New York, Tennessee and Texas. However, there are some realty markets where house prices are still ‘normal’; for instance, Philadelphia, Chicago, Cleveland, Detroit, and Miami-Fort Lauderdale Florida. Thus, targeting these markets would be a mindful decision.
Read More About Current US Real Estate Market Trends: https://nationalrealtyinvestmentadvisors.wordpress.com/2015/05/18/how-current-us-real-estate-market-state-is-affecting-buyers/
Choose the Right Mortgage Plan
Mortgage plan has long term effects on your financial assets. Thus, shopping around for mortgage loan is as important as shopping around for the property. Take reference from your social circle. Additionally, hire a mortgage broker to improve your chances of landing the best deal.
When you get the quotes, don’t just compare them on interest rates. Consider the additional fees as well. Ask for the Good Faith Estimate worksheet. Know who will be handling your loan eventually. Additionally, provide the exact financial details to broker to get better mortgage advices.
Do the Local Market Research
Whether you are buying a home for self or want to keep it on rent, knowing about the local market & neighborhood is of utmost importance. Primarily, it is location that decides whether you have landed a good or bad investment deal.
Check the price of comparable properties in the area. Get to know the neighborhood like its crime report, availability of public amenities, etc. Ensure that the property will actually attract tenants. Additionally, don’t begin the negotiation before a thorough property inspection for repair and renovation.
Consider Additional Costs
Most first timers do the blunder of assuming their house purchase will cost them only the selling price of the house. There are many hidden costs involved in the process, which are easy to be overlooked.
Take the following charges in account when deciding what price range of the house you should consider: Bank valuation fee, mortgage insurance, property inspection fee, legal process fee, transportation, title insurance & registration fee.
Take Professional Help
Taking help of a realty agent is undeniably a mindful step for first-time buyers. It takes a good amount of time in understanding the realty market, but some buyers may not have it. Thus, hiring a real estate agent becomes a natural call in this context.
Make sure that agent or agency you hire is reliable. Check their records using various online and offline mediums. Also, don’t forget to take reference from your social circle. In fact, in most cases people find reliable realty agent by word-of-mouth reference.
Above discussed points are crucial in order to ensure that you land a profitable real estate deal. As mentioned above, in case you don’t have enough time to act upon on all on your own, taking professional help is the right step.
Provide us your feedback on the post in the comment section below. And in case, you are planning to make an investment in Philadelphia, where housing market is still stable, you can contact National Realty Investment Advisors team. NRIA is best realty advisory firm that assures clients high equity profits and long-term rental benefits.