Buying real estate can be daunting for many first-time property investors, after all, when you invest in real estate, there are many variables involved if you want to pick a winning property. Some people believe that the risk involved with buying a house outweighs the benefits.
In this article, we’ll outline what you need to consider when buying real estate, the benefits of owning real estate, what questions to ask yourself before buying a house, and finally the many ways to invest in real estate and diversify your portfolio.
5 Things To Consider When Buying Real Estate
Whether you’re looking into buying a house to live in or investing in real estate to rent out, there are going to be a few things you must take into consideration before parting with your cash. These variables will drastically affect your profit margins, and time spent on the property collecting rent, making repairs and inspecting your properties.
Location is considered one of the most important factors when buying a house, it’s important that you as an investor find the best location possible, this will give you a greater chance of finding a tenant.
You should take into account the proximity to the downtown area when investing, according to Zillow: “In 18 of the 35 large metro areas included in the analysis, buyers should expect to pay more for a home within a 10-minute rush-hour drive to the downtown core.”
But, commuting distance isn’t a dealbreaker for everyone, as remote work continues to be on the priority list for many Americans, they’re beginning to place shorting commute times as less of a requirement.
Another few things to consider are how close you are to shops, restaurants, schools, parks and other attractions. If you’re looking at buying a home fit for a family for example, it’d be smart to make sure the property is situated close to the mentioned amenities and attractions.
2) Crime Forecasts
A study into how crime affects property prices stated: “Our results suggest that of the two major categories of crime (property and violent), only violent crimes exert a meaningful influence…