Smart Real Estate Strategies

By Mackenzie Teah April 28, 2016 Making more money No Comments

Very few people are ever going to buy a property with the expectation that they will make loss at the end of the day. But in a world were real estate prices are mostly out of your control, what can you do to protect the value of your investment? There are a few simple steps you could take and we have listed five of them here:

#1. Buy at a low price

Buying when prices are depressed is certainly a smart strategy but this requires having a fine nose for a bargain and a lot of patience.

Good deals can be achieved by buying a foreclosure: you’ll gain access to the lowest price on a foreclosure but these are riskier because you are most often not allowed to inspect the inside of the home before buying it. You can still find other deals on properties even if you do not buy foreclosures.

#2. Adding Value

You can try investing in properties that need to be renovated if you think you might be able to renovate them cheaply. Properties rise in value when they are renovated and you might not even need to invest so much in a decent renovation. You could simply replace some doors, repaint the house, or even plant a garden. You can replace and upgrade some things inside the house like the windows panes, bathrooms, and kitchens.

#3. Stable Community

Your property is more likely to be appreciated if it’s located in a good community. Is the community getting more people in, or are people leaving the area? Have the property prices in the area been rising or have they been declining? Check the demographic of the community. A well-educated neighborhood tends to hold their value very nicely.

Potential home buyers will want to live in a place where they are able to get jobs with good salaries, and send their children to good schools. An investment in such areas is likely to attract high prices.

#4. Invest in homes with a nice view

Homes with an ocean view are usually well sought after. If your home has such a great view (of an ocean or something else), it’s likely to be appreciated and attract a relatively high price.