With the New Year bringing fresh opportunities in property investment, smart investors are snapping up properties at a good price while most of the buyers are still returning from holidays. If you are one of the early birds, here are four tips you may find useful:
1. Pick an investment method before you buy
Have the “end in mind” and know what you will do with the property. Do you plan to keep it until market conditions improve and then sell it? Are you renovating or detonating? Or will you make it your new home at some stage?
2. Inspect the property from an investor’s point of view
Seeing through investor eyes while choosing properties will lead you to more profitable deals. The name of the game is simple: Buy Low, Sell High. Cheap houses that need repair will probably turn you off as a home owner but will attract you as an investor.
3. Study the area, include sales data research
It is crucial that you study the area where you want to invest. Know your market and think about who you will be selling to. Keep up-to-date with the actual sales in the area, not just the listed prices on the internet. Spend a few dollars if you have to, it will save you a packet in the long run.
4. Make your first offer unrealistic
Veteran investors say that if the seller accepted your first offer, you paid too much. One of your key responsibilities is to purchase the investment property for the lowest price possible. Don’t be afraid to throw in a ridiculously low offer at first. Make it appear that you’re serious. You’ll never know when the seller will bite your bait.
