Posts Tagged ‘investment’

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As we were out on tour today we caught up with our latest observations on the local real estate market. The main topic of conversation was friends and potential clients asking about investment property.

With dismal returns on many investments, we’re all experiencing more occasions in a social setting where someone will say to us:

“If you ever see a really great deal, give me a call!”

Or perhaps, someone who is sort of interested will contact us once in a while when a low priced property catches their eye, and they’ll want to go out and see it.

How do you respond to this my colleagues and I wonder?

It would be nice if finding a great deal was that easy, if it was, a lot of agents would just make money buying properties for themselves!

The reality is that a buyer and agent do not usually stumble across great deals, but dedicate a large amount of time and energy into a focuesd search.

Figuring out what you want to spend, lining up your financing, establishing neighborhoods you want to purchase in are all good first steps. Your agent can help you with some, and others require your due diligence.

Do you have the financial resources or the expertise to purchase a fixer?
Are you looking to buy as a long term investment so your children can stay in the area?
Are you able to put enough money down so that the property breaks even or cash flows?
Have you researched market rents?
Do you know how to factor in expenses and vacancies?
Are you willing to take on potentially tricky legal situations and possibly get a better deal?
Have you looked into the local rental restrictions for different kinds of property and decided you are comfortable being a landlord?

When you have all your ducks lined up, you and your agent are ready to commit time to looking at specific property !

With time and hard work you will be able to make a good investment, and buy a good if not a great deal!

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