When heading out to buy your first home, there’s a lot to think about. There are always little details that become a surprise to a first-time homeowner. Sometimes it helps to have insight from more experienced buyers. Sometimes it helps to hear from experienced buyers as to what lessons they’ve learned about buying a house a different way. When first starting out, it’s hard to know if what you’re basing your decision on is right or not.
Here are some of the factors which you should consider before buying a new house.
1. Location and environment
Location of a property does play a major role in identifying its value. Every buyer or tenant wants a locality that’s near to facilities such as schools, churches, social places and markets. These are the vital things that should be considered when analyzing the property location. For example, buying a property near the city will cost more than buying one in a remote areas. People may not always prefer to buy houses in remote areas just because they’re low-priced, but also the benefits that come along with it. The location of the business is also important as you cannot build a house near a dumping site, a swampy area or a quarry. People hesitate to live in such environments.
2. Fluctuation of prices
As an investor, you should be keen on vacillation of prices and tax implications. Some properties may become more valuable in the near future so you should be wise to invest in property locations that show signs of improvement. Some of the best ways to spot these areas is by keeping an update of oncoming projects in the area for instance, a government road under construction. Any infrastructural project that is set to come up in an area increases the value of a property. Moreover, increase in taxes leads to increase in the cost of property. The most important thing is buying or building the property when the prices are low.
Quality goes with value. Shop for quality and you will get the best returns. The material used should be high quality so as to prevent extra cost of repair in future. Remember that cheap is expensive and that you are building this for the long-term. Try to make it attractive so that you can get a good rental return. This increases your capital growth and reduces the expenses.
4. Have a market
For you to succeed in the final sale, you must identify the type of market you are targeting. There are many kinds of markets such as high income earners, middle income earners and low income earners. You can make a lot of money from any kind of market. All you need to know is who is ready to buy from you and when. Some of the ways you can know is the environment in which the property is situated.
Put yourself in the shoes of your target market. Who are they and what are they looking for? For example, if most of the buildings in a locality are targeted to the middle income earners, it is not wise to build an extremely expensive apartment in the area. This is because you might be forced to lower your prices to fit in as you wait for customers, and this will reduce your investment returns. It is also wise to do your research on the kind of houses that are in high demand. It will help you build houses that will generate immediate income.