Buying a house is an important investment that needs to be well planned for. Here are some tips for buying a house that you should apply to avoid regrets down the road.
Sites such as realestate.com.au This is one of the supreme factors that you should consider. It goes without saying that you should choose a house that is close to your work place and social amenities to save time and money that would have been spent driving for long distance to go to work or recreation parks. Find out if the schools around the area offer the courses that you intend to do in future. More often than not, the cost of living in areas close to urban areas is usually high. Hence, you need to put in place the necessary financial plans if you intend to relocate to such an area.
Floor layout of the house
Different homes have varying floor layouts that are solely dependent on the architectural design used to construct them. The layout in your selected home should be in line with your specific needs and preferences. The rooms should be spacious, well designed and easily accessible. For example, if you love cooking the kitchen should have ample space for various kitchen accessories such as fringes and ovens.
Residential areas experience serious traffic build ups especially in the morning and evening. Hence, it is recommended to consider the amount of traffic. Most beach communities have one or two major roads that experience high traffic especially during summer. Bottom line, information on traffic patterns will help you avoid wasting time on traffic jams as you will know when to expect least traffic.
Finally, consider the cost of purchasing the home. Compare and contrast the price with other homes in the neighbourhood to make an informed decision. It’s totally fine to use accredited real estate website to compare the prices.
No major upgrades
Be sure that there are no major capital spends in the home such as a ducted heating system. Aspen Air can help you with a ducted system or a combined heating and cooling unit if required. They do the leading brands such as Brivis and Braemar and are based in Melbourne, Australia.
The real estate industry has its busts and booms. There are times when properties sell quickly and there are times when they stay in the market for a long time. When the sales are low, you can find an underrated property at a good price. This will enable you to sell it at a huge profit when the markets are good. Here are a few ways of finding an undervalued house.
A motivated seller
Getting a motivated seller is a sure way of securing an underrated property. You should pay attention to the circumstances behind the sale and their present conditions, for example, financial problems, lost job or divorced. This will help you know how to negotiate with the seller.
The ugly duckling
Real estate is not about buying the worst property on the street. You can get an ugly house, transform it and still sell it at a profit. Look for properties that require a little TLC. You will be amazed at how some paint, new fixtures, new cabinetry or landscaping can elevate the value of an undervalued property.
Most underrated suburbs tend to boom after an increased spending in local amenities and infrastructure. New parklands, shopping centres, train lines and roads can increase capital growth and elevate the rental yields. Therefore, buying properties in areas that are scheduled for new developments can help you yield profits from its future sale.
Ensure that you establish a network with professionals in the real estate industry. These experts will inform you about underrated properties that they come across. They will help you find motivated sellers and ugly properties that can transform into good profits.
You can also get undervalued properties by looking for vacant properties. When you see that, a vacant house has tall grass you can check out with the local authorities and find the owner. You can also check out houses that have passed through auctions as they are always sold at a throw away price.
Real estate is a bubble that has affected the United State housing market in more than half of the States. The market has been affected by the fact that many homeowners are underwater-a condition where the mortgage value is higher than the value of the house. The prices shot high in 2006 but registered a drop up to 2012, up to date the real estate/ housing market is embarking on a bumpy and slow recovery.
Decline of prices
The drop in value of houses was announced by the Case Shiller home price index! The cause of the decrease has been attached to the following areas; increase in foreclosure rates, foreign banks markets, consolidation debt obligation and lastly hedge funds.
What to expect in real estate market 2014
The good thing about the recovery procedure is that many banks have solved the underwater condition. The move by the Salomon brothers-creating of a mortgage backup security has come as a blessing to the real estate. The former Federal Reserve chairman Alan Greenspan praised this move and insisted on the necessity of a subprime mortgage industry.
However, this is the source of the problem, the Northern Rock bank suffured a pinch after its emergency fund were subjected to liquidity problem after it issued a large mortgage.
If the recovery pace remains consistent, then this are the probable outcomes in the real estate market;
· Low inventories as a result of new constructions and decrease in the investors purchasing rate.
· Mortgage rates on the other hand will lower the home sale rate and price gains to a more sustainable level.
As per now, there is a five month estate market; this implies that it would take an equal duration to sell houses at the current pace. However, like we stated earlier, the trend differ among sates, take an example of Washington DC, there is 1-2 months. In such cases that one can use to base an investment decision. Real estate is more than building houses-it is about getting to know what goes around the housing market and what influences the trends!
Demographic expert and economist Harry Dent talks about the Australian real estate market after his recent trip to Australia. His trip had two purposes:
1. Vacation to Hamilton Island
2. Promote his new book being released in 2014
In the first two minutes Harry talks about his vacation and shares a story about the owner of Hamilton Island who bought the luxury island for $150 million in the early 2000′s after a downturn. Then he shares the similarities between the Australian market and the Californian market which has already experienced a downturn. Great video. Watch it all the way to the end.