The New Year is upon us, and it is time to make our real estate investment resolutions. This year, you should resolve to make a profitable investment by locating the best properties available. Consider these real estate investment tips for a profitable New Year.
Resolve to Get Your Finances in Order and Buy Something
Get your finances in order and buy your first or second real estate investment property. To purchase a property, it is necessary to have a good credit score and down payment for the home. You must also identify the type of property you would like to purchase.
Rental properties must be in locations where others would like to rent. Some people choose to by a multifamily property in a second location where they would like to live or in a location where there are more tourists and potential renters.
Many investors use the strategy of “fix and flip” or “buy and hold.” Either of these strategies is recommended. Renovated properties can often have some of the biggest returns on investment.
When looking to purchase a real estate property it is important to compare the property values and rents that are around the property you are looking at. Financial statistics are helpful, but the measure of the market value is often the sale prices of surrounding properties.
Being weary of your tax investment is also something that is an essential to look at. Don’t base your investments on the current tax laws that are in place. These laws are changing constantly and looking for the right property with the right financing is key. Having said that, it is very important to be aware of the taxes that are at hand. Taxes can often be the difference between landing in the green and ending up in the red.
Last but not least, when looking to invest in property it can not be expressed enough that you must always perform a thorough inspection. Hiring a professional to examine the structural mechanical system is an investment that is worth every penny. The last thing that you want to happen is to slide by this concept and regret it in the long run.
Resolve to View Your Home as a Product
When you view your home as a product, you will do whatever is possible to ensure that the property is appealing to potential buyers. This may involve removing clutter and arranging furniture in a way that is more inviting to visitors. Studies have shown that staged homes are more likely to sell than a home that is personalized with the seller’s artifacts. Staged homes sell for more money and spend fewer days on the market. So make sure to clean the home, use aromatherapy and ensure the home is free of clutter.
Refinance a Home
While the real estate prices are low, it is a good idea to refinance. When interest rates are lower, the profits are greater. Every investor has a desire to maximize profits without buying new properties. Stability hungry borrowers are ditching adjustable rate mortgages and refinancing into fixed rate loans. Even though the rates can head downwards, this way you can get them at a stable rate. Also, some homeowners are wanting to combine their first mortgages with the home equity line of credit because of the fear that in the coming years, the rate could jump up and more than double. Refinancing is not a solution that is right for everybody, but in a lot of situations it is a very effective strategy.
Real Estate Investment Resolutions Can Bring Bigger Profits
Investors can increase their chance of success by analyzing the markets and the neighborhoods to find the best resources available. Some of the best real estate properties can be found when a thorough analysis is completed. Using these tips and a knowledgeable real estate agent can help your achieve your New York City real estate goals.
This information was written by Ken Torrino, web relations for Elliman, brokers for: http://www.elliman.com/new-york-city