10 Great Tips to Buy Real Estate within your Budget

2 years ago

You don't have to be wealthy to begin investing in real estate. Regardless of economic conditions, the real estate market is always a viable one. Nevertheless, your budget needs to be controlled wisely for your venture to become profitable. The following suggestions will prove useful in maximising your investment.

  1. In much the same way as buying the worst house on the best street, you can also consider the least expensive home in a great community. Thoroughly inspecting a property which has been on the market for a while and has a low market value may yield qualities overlooked by other investors. A bit of creative renovation may be all you need to do to achieve a fantastic result. Just be sure renovation costs are factored into your budget and the profit potential remains solid.
  2. Foreclosures are often good investment opportunities. Purchasing a home ready to be foreclosed and perhaps in need of repair or renovation can often become available at a bargain price. A bit of research with lending institutions or through state and local government listings can be very helpful.
  3. An investment property requiring a minimal amount of improvement is often a very good deal. A home may appear unattractive compared to its neighbours on the same block and is often purchased at bargain basement prices. The property value, not to mention the profit margin, of a home can increase dramatically with fresh paint work, a tidy up inside and a bit of landscaping.
  4. Before embarking on a new investment venture, sell the property you've just finished renovating. Money talks and cash is a great bargaining chip when negotiating price. Being budget conscious, cash transactions also help reduce overall expenses and may eliminate mortgage interest payments if you have sufficient resources.
  5. Pre-approved loans are essential. Quickly take advantage of investment opportunities by having a pre-approved loan from your lending institution. In addition, this will give you more credibility with real estate agents and sellers who realise you mean business.
  6. Financing is not straightforward. A bit of innovation and ingenuity will result in the best package for your needs. Don't use all your hard-earned cash for a down payment. Options such as a smaller down payment, first and second mortgage combinations if you have several properties, etc., means you can use your cash resources for renovations, meaning you can sell your investment sooner.
  7. Nothing stimulates a seller more than having a vacant house. If the seller is overextended financially they are more prone to quickly make a deal. Remember that the longer a property has been empty the greater the opportunity to negotiate a good deal.
  8. Homes requiring a more extensive facelift should be purchased in more upmarket areas. There is a saying that the worst house on the best street is good value. Homes in need of a good renovation can often be purchased at well below market value but sell well above. If your investment is being made with the option of flipping, homes in better communities will have higher market values and turn around quickly.
  9. Selling any kind of home is often about how it's packaged and advertised. Investors fail to notice older, smaller homes thinking they are of less value. However, if the purchase price is fair and the property requires a minimal amount of fixing in a short space of time, these assets earn good profits. If marketed property, first home buyers are often attracted to these homes.
  10. Real estate agents are there to sell property. By networking with quality agents who know what you want, they can be your best resource for uncovering the best bargains. By not trying to do it all yourself, this strategy will save you valuable time and money.

So, there you have it. 10 Tips to improve your chances of finding real estate investment opportunities that will help expand your property portfolio and lead to greater profits.

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