Nov 09 2007
Tips for Investors Hunting the Next Gem
Investors won’t be discouraged by the state of the housing markets. Buying low is what investing is all about, irrespective of the commodity.
Here are some advise and tips for potential investors:
– Buy in a familiar neighbourhood, near where you live, or work.
– Research the area thoroughly, identifying potential properties and other business opportunities.
– Observe trends, costs, vacancies, and potential appreciation.
– Assess your own skills. If you have to employ contractors for maintenance, costs will erode the bottom line.
– Start small. A single family home or a duplex is a good beginning. Plan to hold it for at least three years.
– Avoid attached and repossessed properties. They can be complicated to buy and they aren’t a guaranteed deal.
– Be pre-qualified for financing. Most investment property loans require a deposit.
– Remember, dealing with people is key, so hold onto your sense of humour.
Source: Star-Tribune, Lynn Underwood (10/20/07) (NAR daily Real Estate News Oct. 31)