Real estate has become big investment and pays off in many cases better than alternative investment portfolios, and in a more transparent manner, in that the amount you stand to gain depends on your own forethought and investment tactics, rather than upon others doing the investment for you. To find those real estate bargains, and there are many, looking through properties to be auctioned is a great pass-time, and can turn into a very rewarding one if approached correctly.
Auctions are a sure sign that home owners want a quick sale. Many of these homes are repossessions and the very reason that they are on the market is because someone else couldn’t afford to meet the bills and the bank wants their money. In many cases, these houses are sold off at bargain prices, though it takes a bit of savvy to understand which make investments and which would eat away your funds.
Finding out about the area in which a home is situated tells you an awful lot about whether a potential investment is a good idea. Auction companies bring out the details of homes for sale in advance, and although this means a little bit of legwork, that legwork could be what makes that house a wise investment. Check size, and what work would be needed to make the house a viable proposition in the future. Look at other homes in the area that are for sale. Here, what you are doing is providing yourself with the necessary information that stops you from buying blind.
By establishing the value of properties in the locality, and being sure of what renovation work would be needed on potential purchases before the sale, the strength of your position is much better than those who buy with little or no knowledge. Here, you will already have an idea of what repairs will cost, and can put a sum aside for the repairs, anticipate what sale price you could achieve were the property in good condition, and have already arranged finance in advance ready to clinch the deal.
PROPERTIES IN RUN DOWN AREAS.
Many run down areas are on the up and up. With the prices of commuting escalating, what is happening is that the inner city areas are becoming more desirable, and are being refurbished to house those people that work within the city. By checking out what is going on in the area concerned, you can ask at local council offices about plans for the said area in advance, and establish what it would cost to bring the house up to a valuable asset. Here you have more time than you would with an auction and can ask different qualified tradesmen how much those specialized works would cost to perform, comparing different estimates and making a budget sheet that gives you not only the amount asked for the home, but how much you can afford to spend while still keeping within the limits of profit.
Asking real estate agents about their less desirable residences is a great idea, because although they may not appeal at the moment, the investment in bricks and mortar is a solid one, if the homework is done in advance. If you know for example that an area is going to be modernized, then having a house in what may become a fashionable area will mean an escalation in prices.
Talk to the agents, though do your own homework too because they want to sell you a home, rather than help you in the investment chain. Local councils will talk about plans for the area, and you can also check other retail prices of homes in better condition within the same geographical area.
PROPERTY FOR POTENTIAL RENTING
Here, the scope for investors is amazing. Those larger buildings can be made into separate flats, though it really does take a bit of mathematical calculation to see if the price of the home and repairs will yield a good rental income. Here, choosing homes in University areas or areas that are close to businesses is a good idea, and many investors are now buying up larger homes and aiming at the upper end of the market, providing executive accommodation for business people, which in turn will yield a higher percentage of income.
Checking local rentals helps you decide how viable the idea is, and keeping an eye on what the work will cost, plus the price of the home, you can make a real killing on the investment in real estate, and guarantee some kind of income by signing up with an agency that deal in property rentals for business people. The advantage here is that those agencies have ready made tailored markets for homes like the ones you are about to put onto the rental market.
The ability to haggle with prices is open to everyone, and signs to look out for are:
*Homes staying on the market for a long time.
*Homes in bad repair, but repairable.
By making the most of all advice you can get in advance of auctions, and by checking on the area of a proposed purchase, there really are bargains waiting for those who have the courage and ability to make improvements and these investments are extremely lucrative as a home is always a commodity that will sell or rent to make income.