While the real estate market has seen its all time high in past, it may amaze you to find that market is saturating steadily in 2013. And while there is general confusion and no one knows exactly what to do, smart people are those who walk two steps ahead and grab the opportunity to make wise real estate investments in 2013 before everyone else starts, says Jeff Adams, real estate expert.
The starting point, says Jeff, is to work out the numbers.
And it is not that tough either. With a little bit of hard work and market research, it is easy to efficiently work out the facts and numbers of the market and predict the near future of real estate.
In 2013, it would be much better if you invest in a real estate property and rent it out. Rather than living in it, if you rent it, you will be able to pay up your mortgages and EMIs.
7 Points to Remember During Real Estate Investing in 2013
1. Keep Your Options Open
Look out for various options for the type of property you are willing to buy. Don’t stick to just one property. Keep a list of properties you intend to buy. If you fix one property without proper look out then chances are that you may give more money than market value for the same property.
2. Connect with the Right Real Estate Agent
Now, even people with zero knowledge of real estate can try their hands in real estate investment in 2013, courtesy to the brokers. Hire a trustworthy agent if you don’t have appropriate knowledge of the real estate market.
3. Check 2013 Property Rates
Check the rates of the properties in the neighboring localities of the property you wish to invest in. By doing so you will get an approximate idea as to what your property will cost to you. Try to focus on properties situated near famous landmarks and near main roads. It will cost you a little more compared to the inner localities in the city, but you can cover it up by renting the same property for a high profit margin.
4. Inspect the Property Prior to Investing
Inspect the property properly for repairs, plumbing and renovations and the extra cost you will have to incur for it. If possible ask the previous owner to do all repairs required before giving possession to you. The inflation today is affecting real estate investing in 2013. Due to inflation many builders are giving lucrative offers to sell their properties. If you are looking for a new house, then builders provide excellent amenities like water purifiers, modular kitchens, electronic gadgets, etc. Ask your agent to get you such offers for the same cost of property. When you give a furnished house on rent then you can ask for a hefty sum.
5. Comply with All Legal and other Procedures
While investing in real estate in 2013, never rush through the procedures. Remember negligence in legal matters can cost you dearly. Although legal matters are very cumbersome and stressful, you need to be watchful. Sometimes, extra taxes and fees for legal matters will be added later on to the cost of your property. Also, check whether the property has NA (Non-agricultural) land certificate and Title clearance certificate.
6. Negotiate Confidently
Negotiate the price of the property to the fullest extent. Ask for the lowest price possible and then you can adjust your bargain.
7. Proceed with Caution and Foresight
Don’t follow the market blindly. Many times after seeing that market rates are rising, people will rush to buy properties and ultimately end up paying higher price than the actual. Try to get your hands on properties still under construction because, as the construction process progresses, the rate of the same property will shoot up. Besides, you can also try properties in less developed areas, as they are also growing steadily due to industrialization but the rates of properties are still low.
In Conclusion
If you have a look at market statistics, you will observe that when the market was in boom, every sector was on a sudden rise. So more people became capable of investing in real estate. Hence, the demand increased and supply was short. To satisfy the shortage, builders came up with innumerable schemes and new buildings. But by then, the world economy had started crashing again and the inflation period had started. Now, there was enough supply but the demand of real estate properties had gone down.
So, those who are planning to invest in real estate in 2013 can wait for the prices to fall further, and those who have already invested should book the profit right now before their venture goes into loss.
