Even if you’re just a casual reader of my blogs, you’ll know that I’m ALL ABOUT property investment. I live and breathe investing, and over the years, I’ve honed my skills and can spot the best property from a mile away.
Now, you might think that it’s all in timing. Wrong. Having good timing is definitely something you should strive for, but it’s not everything.
Let’s take a look at a few tips and tricks to help you know the time, and other factors, are right to invest.
Is It a Buyer’s Market?
Take a look at the real estate listings in your area; how long have homes been sitting on the market? If you find that there are plenty of decent opportunities sitting for months, the supply greatly outweighs the demand. After a house has been on the market for an extended period, you’ll have more negotiating power, and can score a sweet deal.
Check the Weather
It might seem odd, but home prices are generally lower in the colder months of the year. This is because spring and summer are the most popular times for people to put their homes on the market. Finding a deal is all about playing the long game and finding a property that’s been listed for a while. So, wait for the temps to cool down, and the prices will start to drop too.
When You’re Financially Prepared
With all of these other external factors, the most critical indicator it’s time to buy an investment property is if you’re financially prepared. The price could be right, and it could be a buyer’s market, but if you don’t have the cash to put your money where your mouth is, you’re not going to buy anything.
First of all, you need the money to cover the down payment on the mortgage. Without that, you should work on saving money, otherwise, you might get a less-than-favorable interest rate on the loan.
Second, you want to make sure that you have a plan in place for the property. Don’t just buy property on a whim – have a plan to flip, rent, or live in the home before you sign any of the paperwork.
Finally, make sure that you understand the various taxes you’ll need to pay and account for them. The property taxes for one property might be different than another if there is a homestead exemption on the property from the previous owners.
Think you’ve found the winning property? Get in touch with Adpen and let’s discuss it. We’ll tell you if it’s a good buy or not, and will help you plan an effective property investment strategy.
So, there are many factors that go into creating the ‘right time’ to buy, but what about finding the perfect time to sell? Stay tuned for the next Adpen blog to find out!