There is something to be said about investments and net-worth increase over time, however, we’ll leave that for a different day. In this text, we’ll be discussing how to invest in properties, and the ways you can avoid the pitfalls of bad investments.
Common-sense tips that not everyone follows
Most of these tips are common sense, and are highly applicable even if you don’t have experience in the field and this is your first looking to buy a property as an investment. The goal of this text is to provide a quick guide for those of you who are looking to buy a property in which they can put their savings in as to not have them liquid.
This is a good idea due to the volatility of the financial market and the state of the economy. Since the 2020 started, the unemployment rate has skyrocketed and has increased by 90% over the last two years.
This alone is frightening and one of the ways you can provide yourself and your family, some financial stability, is by taking your money from the bank, and putting it in assets like collectables and properties.
Look at the market
Before you start, you should take a careful look at the state of the market and price fluctuations of certain properties in your area. If the prices are too volatile, which they often are not (luckily), you can determine what sort of trend you can expect and you can act accordingly.
You don’t need a professional for that, just the market registry and local price listings and a registry of recent successful bids. There are multiple sites online which provide national and local area information about property values near you.
Study the history of the property
When you find the property that seems suitable, it’s a good idea to study the property and see if it’s been in the news. There are quite a lot of things which could have happened in the house, and it’s a good idea to understand what sort of people lived in it last and why they moved or sold it – did they lose it to the bank – were they drug users, hoarders, etc.
Local property values
When checking the value of your property, it’s also wise to check the value of local properties as well. This will give you a good indication into how much you can expect to sell the house for and what the reputation of the neighborhood is – high crime rates also greatly reduce property values meaning you should be careful when buying.
Public transportation and infrastructure projects
Communal projects, public transport, access to recreational areas, upcoming constriction and infrastructure projects like highways, parks and metro stations will greatly increase the value of a property. The best thing you can do is buy a property which has low current value, however, there are infrastructure projects already underway.
To achieve such success, you need to do your homework and really dig deep into the details of the local area.