There is no argument that right now is the perfect time to be considering the US real estate market. So how can we make sure our real estate decision is a sound one? Obviously, doing some research and homework is indispensable.
Assess Your Goals
Before involved into the deal, you should make sure why you want to invest the real estate. Are you planning to get a property in a great location that will be attractive to people in the rental market? Or are you wishing to obtain a country house for the retirement life? Or the main purpose of this property is to help your children to get access to a top-ranked school? Only when you are clear about your goals can you take the first step of making a good and sound decision.
Know the neighborhood
Certainly, I believe that you have heard of the most three important factors of real estate: location, location, and location. So whether your goal is to attract people to rent it, or for senior life, or for children’s education, the most critical thing you should take into account is to do some research about your neighborhood. Is it easy to get access to the public transportation, supermarkets, gym, and restaurants? Is there a new highway on the drawing boards? And who are your neighbors? Never can you cover all the unknowns, but you can find out some important information if the rental market is viable. Check with real-estate agents, go online to Zillow and Craigslist, and talk to people in town. You can’t accurately forecast what the property will be worth in five years, but you should know if you can rent or buy it next month, and at what price.
Make Sure You Have Some Reserve Cash
If you already own your own home, you know that at some point you’ll inevitably face an unexpected expense—the roof leaks or the refrigerator breaks. You are supposed to keep a cash reserve to take care of any surprises in the upcoming days, including the possibility that your unit might be unoccupied for a (hopefully short) period of time. You also need to build these irregular expenses into your financial equation to help you decide, in the final analysis, if the whole project is worth it.
Investment is a huge issue in our daily life, especially the real estate investment. Although right now the US housing market is the top investment opportunity that anyone should be considering, we should do thorough and comprehensive research before making the final decision in order to get a most satisfying deal.