Is buying real estate anywhere a good investment option? Properties from places like Perth or property in Geraldton can be good ideas. Land can generate an ongoing source of income, as the value tends to appreciate over time. It’s a good first step to building independent wealth.
The problem is that there are bad things attached to it, too. It is possible to end up with a bad investment, even in real estate. The saddest part is that no one knows how to look for these signs when they haven’t had much experience yet. This is bad because property tends to be a starter investment.
Buying real estate can be a very consuming problem. There’s so much to think about or work on, even if you buy great buildings. It can get a lot worse if you buy bad property.
To help you avoid those things, here’s some sound advice. There are ultimately five things you need to look out for when purchasing real estate. Keeping these in mind can help cut down on the headaches that happen if you make a wrong choice.
Do the numbers make any sense?
If the figures don’t add up, you’re looking at a bad move. If the seller isn’t budging on the price, you may want to consider looking elsewhere. You want to make money, and while spending is necessary, spending too much can consume more than just your cash.
Be sure to look at the property, see if it’s a lemon.
A lemon can be many things. There might be too many elements that need fixing. You might be buying in a bad neighbourhood. There might be termites in the foundation. The place may have been a crime scene, which is going to be unsettling for future buyers.
Do the detective work. If your property turns out to be a lemon, walk away. You will save yourself a myriad of headaches by doing so.
Consider if you’re getting hard facts out of the seller.
You’re looking at statistics like rentals compared to vacancies, the allure of the neighbourhood, and profitability on a year-to-year basis. If they’re not giving you these facts, your best move is to assume they’re not willing to give them. The reasons may vary, but usually, it’s because they’re low.
You want to know these things. You don’t want to walk into things blind. If the numbers are all guesswork and have no paperwork backing them, walk away.
Check the location.
If your property is in a bad neighbourhood, walk away. If it’s a hot property, then the price will determine your next move. If it’s in an up and coming place, like real estate Geraldton, then you want to take a moment to think about how long you want to hold the investment.
Finally, look at the cost of maintenance. If the expense of the upkeep is high, consider how much that will set you back. A property that’s slowly declining is a bad investment because you’re sinking, even more, money into making sure it’s in sale-worthy condition.