Real estate can be a real eye-opener of just what you can achieve with your funds when you set your mind to it. Whether you’re buying a personal property or looking to go down a real estate route, bidding wisely could see you making your fortune at last, and it’s all thanks to those all-important bricks and mortar investments.
At least, that’s how real estate should go. The problem is that, right now, you don’t know much about what a good real estate investment looks like.
As such, it’s all too easy to make poor investments or lose money when you aren’t looking. And, with such large sums on the table, that could be a disaster. That’s why you always need to make sure that you aren’t paying above the odds for a property before you part with such large sums. And, we’ve got some red flags to avoid at all costs that should help you to do just that.
#1: Brokers Won’t Touch It With a Barge Pole
Mortgage brokers stand to make just as much money from this investment as you do, so they’re likely chomping at the bit to lend you cash. That said, since poor lending decisions crashed the market back in 2008, brokers have become increasingly wary of bad deals. As such, you’ll typically struggle to lend on a house if you’re borrowing way over property worth. As soon as brokers show reluctance about stretching to the full amount, then, alarm bells should suggest that perhaps your offer was a little too generous after all.
#2: A Price That’s Higher Than Market Averages
Paying way above market averages can also be a significant mistake, even if you think the house itself is worth the price. Remember that things like local crime rates and proximity to train stations, etc. also play a huge part in value, and this is all information that companies in the know like Del-co Realty Group can make you aware of during your first viewing. Make sure to heed their warnings so you only ever submit a fair offer with averages in mind. Otherwise, you can kiss goodbye to making money for a good few years yet.
#3: A Lot of Work Under the Surface
We’ve all heard about that home-buying ‘love at first sight’ scenario. If you fall foul to this during your search, it’s all too easy to offer the full asking price without considering what you might need to spend on that property. But, as surveys and contractors reveal, hidden work such as damp, structural issues, or even the need to repair roofing can all set you back. Add these onto a full-price offer, and you could end up paying substantially more than you should. So, always keep your head screwed on and get things checked before you settle on that final number.
Keep these essentials in mind, and you might just find that property investment isn’t such an out of reach goal, after all.