Are you looking for the Real Estate Investing Tips? Investment property in real estate must be well thought out for both individuals and investors. You have to think a lot in advance, gather a lot of information and make decisions. Do you prefer to realize all your ideas and wishes in a new construction project or do you imagine acquiring an existing property or even a property that needs to be renovated?
The need to renovate buildings arises naturally due to age. From the point of view of content, a reform in the construction sector is defined as the restoration and/or modernization of a structure through constructive and technical measures. The goal is to eliminate damage and maintain the value of the building fabric.
To ensure that the adventure of real estate investing reform does not turn into a nightmare, Yarmoloy Group experts have compiled some important tips for you below.
Appearances can be deceiving so professional advice is absolutely necessary
The most important advice is not to be blinded by the purchase price of the property, which is usually seductively low. Keep an eye out for the inevitable later costs as they can add up to astronomical figures.
Of course, you may come across a prestigious old property whose condition appears very acceptable at first glance and which would be available for immediate occupancy. But unfortunately, the beautiful appearance is too often deceptive, the vices are hidden and are only revealed little by little.
To avoid these kinds of unpleasant surprises in real estate investing, you should definitely seek the advice of an experienced building surveyor. It has the knowledge and technical equipment to assess the structure and foundation of the building.
A major issue that needs to be cleared up by a professional is roof damage, damp masonry, and fungus or mold infestation. Has any material been used in the past that could be hazardous to health?
What is the condition of the electricity, water and plumbing throughout the house? What is the condition of the electrical installation, water and pipes throughout the house?
In addition, the expert will check the energy status of the house and evaluate it for you. In older buildings, new owners often have to do extensive work to insulate the building and replace windows.
Once all these factors have been checked and evaluated, a valid estimate of the renovation costs and a comparison with the available funds can be made for real estate investing.
Weigh the advantages and disadvantages of Real Estate Investing
Here we are trying to make it clear about the advantages and disadvantages of Real Estate Investing, paper and with a sharp pencil, a decision for or against buying a home can be made quickly and with solid numbers realistically obtained.
In addition to the purchase price and fit-out costs, an estimate of any expected increase in value is also needed. It is equally interesting for investors and private buyers in case a subsequent rental or resale is considered.
Do not forget to clarify if it is a listed building or if a review procedure is underway for it. These particular homes often have special appeal, but are also often located in structurally weak areas where there is value stability, but appreciation cannot be achieved. This is something that can be expected much sooner in attractive agglomerations or emerging locations.
To this must be added that reconversion measures require time. To bridge the gap until they can move in, not insignificant additional running costs will be incurred for paying rent on the old flat or other alternative solutions.
In short, it can be said that the purchase of a property that needs to be renovated is profitable if the reform is cheaper to carry out with everything included than a completely new building.
But let’s not completely ignore the emotional side of buying a property. Love at first sight also exists in houses. And if the financial possibilities and enough idealism are given, why not follow the voice of the heart, undertake the project and create the dream house for the whole family? This may also apply if you know you can do some of the work yourself.