In order to make sure you’re making a sound investment, it’s important to do your research before buying any property says Greg Van Wyk.
Here are 15 key things to look into before purchasing a piece of real estate:
The old adage “location, location, location” is just as relevant in the world of real estate investing. You’ll want to consider things like the surrounding neighborhood, public transportation, and schools in the area.
2. The condition of the property:
It’s important to inspect both the interior and exterior of the property before making an offer. Things like plumbing, electrical work, and roofing should all be in good condition. Otherwise, you could be facing costly repairs down the line.
3. The potential for growth:
When considering a real estate investment, it’s important to think about the future. Are there plans for new construction or developments in the area that could increase the value of your property?
4. The current market conditions:
It’s a good idea to consult with a real estate agent or broker to get an understanding of the current market conditions in your area of interest. They’ll be able to tell you things like what prices are being fetched for similar properties and how long homes are staying on the market.
5. Your financing options:
Before making an offer on a piece of real estate, you’ll need to know what kind of financing you’ll have available to you explains Greg Van Wyk. There are a variety of options, from traditional mortgages to home equity lines of credit. It’s important to compare interest rates and terms before selecting a loan.
6. The tax implications:
Investing in real estate can have a variety of tax implications, from property taxes to capital gains. It’s important to consult with a tax advisor to see what will be required of you come tax time.
7. The insurance requirements:
You’ll need to insure your property against things like fire, theft, and liability. Make sure to shop around for the best rates and coverage levels.
8. The costs of upkeep:
Owning a piece of real estate comes with a number of associated costs, from monthly utility bills to regular maintenance and repairs. Be sure to factor these into your budget when considering an investment property.
9. The potential rental income:
If you’re planning on renting out your investment property, it’s important to research the going rental rates in the area. You’ll also want to make sure you have a solid understanding of the landlord-tenant laws in your jurisdiction.
10. The zoning regulations:
Before buying an investment property, be sure to check with the local zoning board to see what kind of use is allowed for the land. There may be restrictions that limit what you can do with the property explains Greg Van Wyk.
11. The homeowners’ association rules:
If the property you’re interested in is part of a homeowners’ association, be sure to review their rules and regulations. Things like pet restrictions and noise limits could impact your decision to purchase.
12. The potential for environmental hazards:
Some properties come with environmental hazards like lead paint or asbestos. These can be expensive to remediate, so it’s important to be aware of them before making an offer on a property.
13. The crime statistics:
Before buying an investment property, it’s important to research the crime statistics for the area. This will give you an idea of the potential safety risks associated with the property.
14. The quality of the schools:
If you’re planning on renting to families, the quality of the local schools could be a deciding factor in their decision to lease from you. Be sure to check out standardized test scores and other indicators of school quality before making your purchase.
15. The proximity to amenities:
People are often willing to pay a premium for properties that are close to things like shopping, parks, and public transportation. Be sure to take this into account when considering an investment property.
By doing your research and taking the time to understand all aspects of the deal, you can make sure you’re making a smart investment in real estate says Greg Van Wyk.
Purchasing a property is a big decision, but with due diligence, you can be confident in your choice.