When you start thinking properly about your future, choosing a home isn’t just important for your personal comfort. It’s also an asset that can allow for great security on your wealth and part of your next step up the financial ladders. Choosing a home becomes a choice with twice as many factors to consider. So, when you’re selecting your next property, how do you do it? How do you make sure you’re picking a place that will make you happy and be a smart financial choice? The following tips should help you find that out.
Location, location, location
This isn’t so much about a geographic choice as it is about the organizational fundamentals of a home. There are a lot of aspects to consider about the location of a home. If you want a family home, or want to market to families, is it close enough to school? How far out of the way is it for commuters? How accessible are all the conveniences? A lot of this changes importance depending on demographics. Your personal taste will dictate what matters to you, but know which points can be marketed either way, as well.
Wants vs. needs
It’s important to know, when you’re buying a home, which boxes it ticks. But it’s also important to know which boxes go into which categories. What are the needs that the home absolutely needs to fulfil? What are the wants that can drive a buyer closer towards it? For yourself, balancing wants vs. needs comes down to budget most of the time. But finding the extra wants on top of the needs can help you discover which parts can add real marketing power when selling.
Choose an area with serious wow factor
When it comes to actual geography, you can’t go wrong with choosing some of the more aesthetically gorgeous parts of the world. There’s also the option of finding those closest to some of the most metropolitan areas of a city. Whether it’s a spacious city apartment in New York or a gorgeous beach-facing property in Honolulu. It’s important to identify the wow factor of your choice. This is great for marketability. The kinds of areas featured in sites like http://www.choi-realty.com/ will always remain in demand.
Getting informed about an area and its history can let you know just how good a deal you’re getting. A lot of realtors can use the ignorance of their interested parties to jack up the price. Don’t let this happen to you. Use a site like City Data to find out everything you need to know about your area. You can research everything from population and average ages and incomes to crime statistics. If you have young children, you may also want to check the registry for local offenders before you buy. As an investor, it’s just as important you prepare for the knowledge smart consumers will have, too.
Take a look around the area
It’s important to everything that their home fits their aesthetic. To make sure you know every ounce of aesthetic appeal, make sure you take a good look around the home and the surrounding area. If you can’t do it physically, Google Maps can help do it for you. If possible, try get a look at how it is in the morning and night, too.
If you’re buying a home with the intention of living or selling a lifestyle, it’s a good idea to know how conducive to that lifestyle it actually is. For example, if you’re buying a waterfront property, think about why. Is there a great surf culture nearby or is it more suited for those who like to boat? How adequately does your property fit those needs? If you’re selling a property with boaters in mind, you need to make sure it’s actually near a dock for instance.
Compare and contrast
You no doubt have a mental list you tick in your head as you go from property to property. However, it’s easier to develop a bias and be wowed more by the next thing you’ve seen. Don’t let an erroneous part of our perspective color a choice. You could be picking a home besides the one you actually want. There are charts you can use to measure the objective value a home has towards you. There’s no accounting for taste, but when those decisions are too close to count, use it to compare.
Does it have investment potential?
This a key question in mind for just about anyone who’s buying a home as an asset, as well. There are a lot of ways you can renovate a home, so how much does your property allow for it? Is there an aspect of it that you can’t change due to local law that you would rather? How much space do you realistically have for renovation and addition? Knowing your area is important in finding what investments you can make in the home.
Consider older properties, too
If you’re looking for a home, the idea of somewhere older over somewhere newer will always be a less attractive prospect. But it can stop you from buying a home way cheaper than it should be. Renovation takes work, but it could be the key to some of the best investments you’ve ever made. Perhaps you can taking a ‘fixer-upper’ and take the time to make it looking practically new. It could yield bigger profits than turning over new houses ever could.
Cost vs. return of renovations
It’s always a good idea to work in investing into your home, renovating so that its value will increase. But it’s important to know when these renovations will actually make enough money to be worth the cost. In terms of time and effort, you can put your own value on that. However, you want to make sure that your money spent will get you a return. Living in a renovated home is all well and good, but if you’re selling, it needs to be a smart investment. Estimate all projects before you start them.
Research a house’s history
Check more than the history of the area the house is situated in. You can put yourself in a very advantageous position by finding out the history of the house itself. The legacy of a home can add or detract value away from it. If the seller is unaware of legacy values, it could make a rather sneaky profit for you. If they’re acting unaware of what legacy might detract value, it can make a great bargaining chip. Information is always power when it comes to negotiating and selling, so arm yourself well in it.
Estimating utility costs
One of the lesser looked at qualities but a very important aspect of deciding whether a home is liveable in. Check the costs of utilities in the area before you’re wowed by a slightly lower price. It could work out that the ‘cheaper’ home is actually less economically viable in the long run. Estimate the cost of utilities by listing down all the expected utility payments. You can get the information either from local government agencies or neighbors. This helps you get a realistic expectation of what you’ll be paying each month or year.
Getting an inspector
If you’re not sure about a home’s value at any point, hiring an inspector can be a great idea. Unless they’re selling a false bill of goods, most realtors or housing agents won’t object even before the deal is struck. If anything, it shows you’re serious about buying the place. At best, you’ll get a confirmation that everything is as it seems. Though for an investor, finding a problem can help you negotiate a better price. It can just as easily help you avoid a lurking disaster or untrustworthy seller.