When looking to invest in real estate, one of the biggest factors to consider is the neighbourhood. The right neighbourhood can be the deciding factor in turning over your investment. No matter how pretty the house, how much of a “good deal” you are getting, if you fail to pay close attention to location, community and any added features surrounding the home, then it may not end up being such a deal breaker after all. The main tips to choosing that just-right neighbourhood that will make your real estate an actual investment versus just buying a house to renovate:
Families who are renting or buying a home will insist on spending money on a home or apartment, but will want to make sure their children are in good schools. This is why it is imperative to scope out the surrounding schools and neighbourhoods prior to purchasing your real investment. Being near a good school can be the weight on the decision scale that will tip to your favor.
Choosing a property that’s convenient for people can make your real estate investment a savvy financial choice. If you choose property that is close to jobs, shopping, entertainment, banks, buses, etc. it will tend to lead you to more possible tenants. People typically look for apartments and homes that are located relatively close to their daily routines, thus making an already hectic life a little easier.
Everyone wants to feel safe in their home, whether they are owners or renters. If you want to make a profit via good renters or owners, choose your property with safety in mind. Prior to investing, get up-to-date accurate crime statistics information that covers the area your new investment is located from a reliable source, such as the local police station.
If you happen to come upon a decent property for the right price, but the neighbourhood isn’t looking to good, don’t give up. Check into any future developmental plans for that area—plans that may lead to new businesses, leading to more jobs, thus making your new property value go up. There may be plans in the near future for a new university, which only gives way for college students needing places to rent.
Remember a beautiful home is one thing but location is everything. Educating yourself on all future as well as present possibilities can lead to an investment boom that would make your banker proud. If there are future jobs, the neighbourhood is planning to grow; the property will be worth more. It stands to reason that buying it while it’s down is an ideal gamble that will pay off. The right timing in any investment can be the deal breaker for any smart investor.
One of the most obvious thing as an investor we should consider before purchase is… investigating the property taxes. However obvious this should be, with all the other things that have to be considered, this is one of the things that is the easiest to forget. You see the perfect home in the right location for the perfect price but the biggest surprise could be waiting when the property taxes come due. Many investors have found this to be a struggle if they aren’t prepared for it.
Real estate investing can be a lucrative way to make money but as you can see there are lots of elements to consider prior to the actual purchase. Paying attention to these little things can be a way to ensure your investment pays off. Just remember when searching for your next investment, look for a real estate investment that’s in a low crime area with low property taxes, located in a convenient location, with great schools. Educating yourself on your next investment is the best way to achieve the maximum financial results.