Whether you’re a first-time buyer looking to buy their dream home or someone looking for a second home, the same rules and principles apply. You’ll need to assess a real estate property carefully before investing. Real estate is considered one of the safest investments you can possibly make because land is a scarce resource. However, that doesn’t mean every real estate property is equal.
Things to Consider for Any Real Estate Investment
Here are some things you’ll want to consider before investing in real estate. They include:
Location is king in the real estate world. For instance, if a property is close to amenities or boasts scenic views, its price skyrockets. Likewise, properties close to transportation hubs, metro stations, bus stations, commercial areas, and more have a higher value than properties in other areas. Hence, consider a property’s location carefully when investing. Many real estate investors often only assess the property’s location at the given moment. However, the current area outlook doesn’t paint a complete picture. You’ll want to adopt a mid-to-long-term view when assessing a property’s location to get an excellent return on your investment. Consider evaluating how the area will develop over five to ten years.
Let’s assume you find a property that you like. You’ll still have to purchase it. Ideally, you’ll want to find an undervalued property selling for lower than its market price. However, those instances are rare. Regardless, you’ll want to evaluate a property before investing. Most investors often use a sales comparison approach. This approach compares a property’s price to recently sold properties with similar characteristics in the same area.
Once you’ve evaluated a property, it’s time to purchase. Investors need to think carefully about financing. Most homeowners rely on mortgages to finance their homes. According to the US Census Bureau, approximately 64.8 percent of homeowners finance their homes via mortgages. Getting a mortgage is a good idea if you don’t have the necessary cash on hand to purchase your home outright. However, consider cash offers if you can afford to do so.
Another thing to consider when investing in a real estate property is the construction date. Newer construction projects generally offer attractive pricing. In addition, they’ll let you customize some aspects of your home. These projects also typically offer modern amenities. However, don’t be surprised if you face delays, increased costs, and other problems if you’re purchasing new construction. Existing properties typically provide convenience. They’re also cost-effective. However, it’s not uncommon for existing properties to require maintenance and renovations.
Overall Real Estate Market
The state of the overall real estate market also affects your investment. For instance, the global real estate market has been booming exponentially despite the pandemic. Figures show the global real estate market is expected to grow at a compound annual growth rate of 10.5 percent from 2021 to 2022. Naturally, there’s increased demand for real estate. As a result, you can expect to pay higher-than-usual costs for real estate investments.
Purchase Real Estate in Calgary with Urban Realty
Urban Realty is a leading real estate agency. If you’re looking to invest in the Calgary Real Estate market, they can help you. Urban Realty can assist you with putting your Calgary duplex or bungalow for sale. In addition, if you’re looking to purchase duplexes, townhomes, or new houses, they’ve got you covered. Visit their website for more information. Alternatively, contact them today to get started.