Finding and Evaluating Property

Today, investing in Real Estate more profitable than ever. There are many different mortgage brokers willing to lend you money and properties available everywhere. But even in a healthy market, with new tools to find and evaluate potentially profitable properties, you can lose a lot of money in a short time if you don’t know what you are looking for. To maximize the odds of winning, do your own market research and consider these tips.

The process of finding properties that are 'diamonds in the rough' has been revolutionised by the Internet. You can spend hours on-line finding descriptions, prices, photos, and useful legal information about properties close by or thousands of miles away. For many of these properties you will pay real estate fees, particularly if you are the seller. The way around this is to restrict yourself to FSBO (For Sale By Owner) ads on eBay, Google Base, or Windows Classifieds.

Take the time to visit real estate agents in the area you are looking to buy. If you can afford it, you can obtain an MLS, a multiple listing service, and get the same information they get. In some locations, particularly overseas a license is required, even if you have the cash.

Even if you use the web to find a great value property, be prepared to do some 'leg work'. Many experts suggest that the only way to judge properly is to visit the property and the surrounding area. Is the neighbourhood maintained in a way that won't decrease the selling price in the future? While you're driving around, look for other properties for sale and talk to neighbours or local shop owners.

The next door neighbour might know something about that property that you may not be able to see at first glance. Be prepared to make more than one visit, particularly if you are planning to live in the property. Visit it in different kinds of weather and at different times of day to get a really good feel. This is not as important if you are buying the property as an investment, but can still assist in the final decision. Property, land and houses, look and feel different in the cool of the night compared to the heat of the day.

A safe and secure roof is very important so the best way to check for a leaky roof is to go when it's raining, exactly the weather that most purchasers will try to avoid, providing you with the upper hand and normally more attention. Going that one step further puts you ahead in the race. Information is power in real estate.

If you are very interested and feel that you have done your appropriate research organise for a professional inspection. Review the report you receive carefully. It's not required that everything is 100%, but every major and minor flaw should be recorded. Leaky plumbing or roofs, stained carpets, damaged walls or floors, inoperative air conditioning or heating systems should all be detailed in the report. Look especially for any standing water in basements or near foundations.

Remember that everything is negotiable when you are purchasing a property, so there's no rule about who pays for repairs. Still, be realistic because very few properties, even newly constructed ones, are perfect. If they are perfect, they are often more expensive, requiring you to hold them for a longer extended period of time.
Happy house hunting!

As an investor seeking maximum rental and capital growth, you need to invest in property which is high in demand, yet also has limited supply. Let's run through a few of the factors which drive demand.

When assessing property for potential investment, it is essential to pay attention to demographic and social changes that influence where people want to live and what kind of property they want to live in. An example of social change is the lifestyle preferences of today's Australians. Collectively we tend to view ourselves as more sophisticated than we did a couple of decades ago. The "café culture" is proving to be popular, as is the attraction to reside in locations near water. Investors would benefit from capitalising on these preferences by investing in property near café strips, close to rivers, beaches or harbours, and in inner city locations rather than rural locations.

Another factor which is responsible for driving demand is demographic trends. Many baby boomers have the view that the prosperity they have worked hard to create is for spending on lifestyle. As a result, many are trading their large suburban homes for smaller lifestyle-oriented properties located close to the ocean or near café strips. "Generation X-ers" (a group currently in their 20's to 30's), are also attracted to lifestyle - generally they are delaying marriage and family to allow themselves to achieve their goals and single person households are also on the rise. These demographic phenomena point to smaller, lifestyle-oriented dwellings as being in high demand in the coming years.

A rise in professional, dual income households with no children or fewer children later in life heralds an emerging group with money to spend on ensuring that they live close to good amenities, including transport, schools and the workplace. However, close proximity to transport and the workplace will become less important as the trend to work from home and spend less time at the office continues to grow.

When considering factors that drive demand, investors should ideally look for properties that appeal to both owner-occupiers and tenants. Bear in mind that these days, many of the features of a property that are valued by owner-occupiers are also sought by tenants. Bedroom size, a usable kitchen, storage, car parking, and other such features are just as highly valued by today's tenants who will pay good rents for these features.