This is a question that has been asked over and over again by quite a huge number of people. Real estate investment can be a good investment if one understands the few principles that surround it.
Real estate investment is increasingly becoming popular and over the last ten years, it has been termed as a common investment vehicle. Despite the fact that real estates are gaining popularity in the market and making huge gains for quite a number of tycoons, investing in real estates is more complicated than most people think. we purchase houses in San Diego Ca
In order to make real estate a good investment’; you have to shift your thinking from the basic assumptions associated with real estate investment and think like a true investor.
Common Assumptions that Surround Real Estate Investment
Risk Free Investment
Most people assume that real estate investment is a risk free investment avenue that yields a high return. If you fall in this category then you are totally living a dream. A good investor knows that there is no such thing as a risk free investment.
As a real estate investor, you have to understand that for every benefit you gain from your investment, there exists a risk. With investment comes risk; that is just how things work in the business world.
The Appreciation Assumption
The reason why most of us invest in real estate is because we expect the property to appreciate a lot over the years. This assumption may be right but at times it can prove to be foolish or even risky. Investing on this basis only, fails to recognize other factors like operating costs.
The rise of the property over the years might end up being minimal as compared to the operating costs that have accumulated during these years. As a result, the appreciation assumption should not be the only driving force in engaging in a successful real estate investment.
Get Rich Quick
If you investing in a real estate thinking you will get rich overnight, you are just setting yourself up for disappointment. This is a wrong type of thinking that is fueled by self-appointed gurus in property trading. Real estate investment is a long term type of investment that requires hard work, tolerance and ability to act smart.
Benefits versus Risks in Real Estate Investments
For every benefit that one gains from real estate investment, there is at least a single drawback. This means that investing in real estate is an equally good investment plan that can benefit one in quite a number of ways but there are also certain risks associated to it.
Some of the benefits that make real estate to be a good investment plan include:
• As a long term investment, real estate can yield can yield huge capital gains through rise in value. Rising values are normally attributed to an increase in demand for living space or working space per capita.
• Real estate is said to be the most favorable when it comes to tax benefits. An investor can be able to claim quite a number of deductions from tax returns.
• Real estate investment has the capability of hedging investors from inflation through a number ways like: a nominal increase in property value or a decrease of the real value of capital cost.
• Real estate investment gives you more leverage when it comes to using the banks money.
The drawbacks that make a real estate investment plan to be far from risk free include:
• Definition of regional risks. One of the biggest risks associated with real estate investment is regional risk. The quality of location of your property is what makes it a good investment. Defining this quality is usually a number one problem to most investors. Choosing a poor quality location might result to low capital gains. San Diego Ca We Buy Houses
• If the real estate investment was done through a loan, one faces the challenge of variable interest rates. Rising interests can be a strain to most investors.
• There are quite a number of holding costs that are linked to property investment. Some of them include maintenance and repairs, brokerage, taxes among many others.
All in all, real estate investment can be termed as a good investment plan because the risks associated to it are quite low. This is because there is usually a stable development of supply and demand for living or working space.
When a homeowner plans to sell the property, he or she will look for help from a realtor, also known as a real estate agent. These people have the needed knowledge to help you sell your property – they know the rules and the regulations of the real estate market. They’ll find you a possible buyer for the house and if that person likes what is presented, you will be able to sell your house.
The question is – what do you do when the possible buyer doesn’t like what he sees inside the property? The realtor will give you minimum advice on how your house should look like, but they won’t make the changes for you. Therefore, if you are not careful with the presentation of the house, you might not find a buyer for a long period of time.
How do you react when you enter a place and you don’t like how it smells on the inside? Clearly, you do your best to leave as fast as you can. The same will happen to any possible buyer who enters your house and finds a bad smell.
To prevent this, air the rooms as much as you can, burn some fragrant candles or add potpourri in the rooms. If you know how, you can even bake some cookies. The smell will be pleasant and fresh for any of these. It will be inviting and welcoming and will make a good impression.
Tip no. 2 – Interior Décor
This is something that people notice when they enter a new place. To sell easier, your property should have a contemporary look. It doesn’t mean that everything should be brand new, but there are some things that you can do – watch some TV shows for interior decoration, or even get a specialized decorator to help you arrange everything around to make it more appealing. With some simple accents added around the house, you’ll make it attractive and welcoming.
Tip no. 3 – The Exterior
The exterior aspect of the property is the first thing that is seen when a possible buyer comes there. If you have an empty space that is not taken care of, it’s time to change it. Get some shrubs and add them in the land. Where possible, get some exterior flowers. It will make a nice garden and the aspect will be improved. Make sure that the entrance in the house is also taken care of – paint the entry or change the door with minimum costs.
Tip no. 4 – The Kitchen
That is the place where everybody gathers in the morning, for coffee or for breakfast. This should be sparkling clean, inviting, while letting the possible buyers imagine themselves in that place.
Make sure the appliances are in perfect working condition. The oven should be clean too, the sink and everything that is there. If you have small kitchen electronic devices, clean them thoroughly and make sure they work – if they don’t, throw them away. Add some colorful accents and everything is ready.
Tip no. 5 – No Personal Items
While speaking of imagination, try to gather every personal item that you have, like photographs, or personal memorabilia. Leave on the walls only the art items – pictures, paintings, things that a buyer might appreciate. The lack of personal items will make the possible buyer to imagine himself easier living in that place.
Tip no. 6 – The Details
Leave this for the last moment. Make sure everything is in order – the house is illuminated, the place is clean, the décor is great and there are splashes of color everywhere, making the house inviting and welcoming.
Once this is over, make sure the windows are also thoroughly cleaned. You need to see perfectly through them. Take a look at the doorknobs and clean them again, the doors need to open easily, without squeaking hinges, and everything should be great. Add freshly cut flowers on the tables and get some in the bedrooms too. Use yellow flowers if possible, because specialists have discovered that the yellow color invites on spending more money.
Once you have decided to sell your home, give us a call at TDT Realtors and we’ll help you sell faster!