You need to be prepared to do some work to make the best out of any property investment. The amount you can gain from a property by simply waiting on it is limited, to say the least. But development isn’t all there is to a good investment. You should be aiming at getting a better deal right from the beginning. Here are a few of the ways you can ensure that you’ve given yourself a great start on your investment.
A keen eye
Waiting on a property might be limited in the kinds of returns that it can yield you, but that doesn’t mean that it can’t still be valuable. Especially when combined with the tips below, you should look at the fine details of an area to catch the golden opportunity that the seller might miss or might not be able to capitalise on. The area you’re planning on buying in plays a huge role, of course, but so does its future. Look at the news about any potential developments such as new retail centres or schools that offer an area more value to specific sets of future buyers.
Some sound advice
In most walks of life, you can expect middlemen to be little but causes of delay that only cost you. However, when buying a home, they are a necessity. Beyond the legal help you need to push a sale through all the right channels, finding an approved broker can give you a much better deal on how you finance the purchase as well. If you’re buying your first investment property, then you have to remember it’s an expense that’s going to be with you for some time. Consider its long-term impact on your finances and make sure you find the best deal by getting advice from those who know how to.
Plenty of patience
If you’re buying for an investment, then do remind yourself that you don’t need to up sticks and move into a home quickly. You can afford to wait for a while and not play some of the strong-arming games that some sellers will try to. Instead, use the extra time to wait them out and make use of negotiating techniques that could help you see an even better deal. For instance, getting a home inspector in to spot any flaws or changes over time that probably won’t get the seller to drop the price but will likely get them to make the fixes you could otherwise be paying for down the line.
Know your data
Of course, it’s important to know just how unreasonable and asking price might be. Not everyone sticks to the data when it comes to the first offer, so it’s important to be able to spot that. Some of the sources that can inform a fairer price are listings of other property sales in the area and finding comparable properties to match the asking price with. Don’t just look at those that have sold. Look at those that went on the market and how much they went for but didn’t sell anyway. That’s the kind of information you can use in a negotiation to really put a fire under the seller.
The better a deal you get initially, then the more a potential value of a property has to offer. That’s the key to making a successful investment, not just one small step at a time.