Tuesday, September 3, 2013

Introduction To Real Estate Buying

By Ken I Smith


The real estate market can be considered a cyclical sector. Cyclical markets are defined by the somewhat predictable patterns of peaks and bottoms. These types of markets provide great opportunities for investors. Timing, however, can very speculative. Many millionaires have been created from this industry. Right now could be one of the best times to buy property.

Depending how far back you go, over time cyclical markets will reveal patterns. These can be traced and charted over many decades. You will even find smaller patterns within the cycles. This attracts both long and short term investing.

No matter what your intentions are regarding property purchases, you should take several items into consideration. Timing is one of the most crucial elements in turning a profit. Exact timing can be highly speculative. However, the biggest concern for long term investors is never to buy in at the top of a bubble market. You can tell when a bubble is occurring when price far outweighs the value. This is when you should stay on the sidelines.

Property location is a very important element. If you live in a more desirable community, the better your chance of selling your property quickly. When doing research into location, look up the schools in the area. Also look into the distance to the grocery store. Check out past sales in the neighborhood.

You must also look at the age of the house. The older the home, the more it may need repairs or upgrades. These can place a house right out of your budget. There are many times when these repairs have already been done. Look into past maintenance of the structure. Ask for utility bills. Always perform your research as the cost of upgrading electrical systems and pipes can become extremely expensive.

Buying real estate can be tricky and there are many more factors to think about before jumping in. Use the above as a starting place. You should also consult a mortgage broker or bank to see what your lending options are. This should narrow your search quite a bit. Remember that doing your due diligence and investing conservatively are the best approaches to any long term financial goals.




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