subject: Three Things To Check Before Investing In Real Estate [print this page] Buying a house takes a lot of money, time and effort. But if you direct your resources in the long run, it is sure to pay off in the end. Before you buy a house look at the condition and value it has now, as well as what it could potentially become for better or worse. Visiting a real estate information blog may provide added insights you hadn't considered.
Affordability
If you are house hunting for yourself, you need to take a good look at your finances. Do you already have loans and credit card debts you are working to pay off? Make sure you have those under control before leaping into a long term investment.
If you are looking for a house to rent out, consider what he consequences might be if you aren't able to rent it for a while. Will you still be able to pay the mortgage? What if the renters trash the house then declare bankruptcy and move out? Have enough buffer to allow for a little breathing room in case of an emergency.
Work to Be Done
You may find a home with a cheap mortgage, but there is probably a good reason for it. It is worth paying for a professional inspection in order to check if there are any problems that can only be resolved by rebuilding the house. This can include drugs, especially meth, that have been done in the home before and seeped into the walls as well as dangerous mold that will destroy your lungs as well as the house.
Consider other repairs and maintenance. How long until the house needs reroofed or repainted? Is the carpet new and inviting or is it so ugly it makes you want to puke every time you step inside? Is there any bargaining you can do with the current owner before buying it?
Resale Value
Of course the eventual value of the house is important to consider. Since a real estate blog is a good place to find up to date information, keep an eye on housing markets to make sure you are buying when prices are low and selling when they are high. Don't forget to factor in other costs for repair and replacements throughout the home. If the cost of fixing up the home is more than the difference between buying and selling, your investment may not be as good as you hoped.
Learn about your area. Are the plans for the area in which the house is situated that will affect its value? Are new developments arising or new highways or public transportation stops being built nearby? Make sure you choose a home in an area that will tend to get better with time rather than worse.
If you consider these guidelines, you will be better prepared to invest with confidence. Your home can turn a profit with strategic planning.
by: Art Gib
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