The Real Estate Market
The property market is different from what it was 20-30 years ago. The property prices have risen drastically with increasing population in certain parts of the world and people relocating in other parts are also making a substantial difference. The smart individual buyers as their first residence or investment property the colonizers are investing heavily in residential properties. For time being when the rates are down globally. I suggest buying property is the best investment option. It is less risky as it gives returns in most cases.
The fact is that today’s generation is facing different situations and I am afraid they lack the general market knowledge. They do not know how to calculate the real value of a property but they simply check the market value of neighborhood property and make a bid. The fact is they should study future prospective like area of the property, nearby amenities, availability of schools, college, parks transportation, shopping and restaurants, and above all the rental value.
The Ups and Down in the Property Market
Whatever the market trend whether it’s going up or down, the answer is very simple or rather very basic, if you are buying property for the long term it will definitely go up. And it’s certainly not rocket science to understand it but look at the trends. The property generally appreciates at the rate of 10% per year even if it goes through lean time during a certain period.
For instance, if you look at the property rates for the last 100 years of any area you will see that the average increase during the last 50 years has a better record than the previous 50 years. Also, see last 10 years have even better increase compared to what the market was 10-20 years before. So, take for granted that history will repeat itself and you will gain during next 10 years at the rate of 10% per annum to make a profit of 100% in next 6-7 years.
What You Should Look into While Buying a Property
The property should offer low maintenance, and if you are a first-time buyer or even an investor it is even more important as you or your tenants do not have to spend much on strata. Therefore, if you are looking for your first home, or investing in the property market or an expert looking for a promising capital gain for a better future then consider all the aspects carefully.
Things to Remember While Investing in Property
So how should one decide to buy it! On lower rates when the market has gone down considerably or when the prices of property are going up regularly? Okay, the lower price point is also a good strategy if you have a look at what you can buy in your own city with a comparatively low initial deposit to what you can buy in a different city (for investment purposes). It sure does give you a better opportunity for an investment home at a low holding cost and a location of your choice for your money.
I would prefer to flip a house for cash in my local city and see the option of investing in other homes at a lower rate. But I would also like to keep in my mind that the area where I buy is in the right zone for future developments. Check things like coming up with railway stations, malls, and shopping areas. The location of good ranked schools and colleges beside distance of transportation including airport is another crucial point for homeownership.