Quote:
Originally Posted by xelasnave
We all know the three rules... position, position, position.
I would like to share my ideas.
My three guidelines are as follows.
Buy something that has been on the market for twelve months if that is at all possible.
It's hung around no doubt because it was overpriced originally and or has a major buyer objection. But often after 12 months not only has the market caught up but the vendor is ready to listen to a reasonable offer. Often these properties have the price reduced but get no takers because all wonder why it has not sold and stay clear.
Folk think that people will make an offer on a overpriced property but usually this is not the case so the property goes unsold.
If the vendor really wants to move after twelve months they can become less concerned to get "their price".
Second look for a property that is not selling because it has a major objection that puts everyone off that you can fix.
Main road property sells relatively cheap for obvious reasons but you can lessen the main road problem perhaps with high walls and good fences to keep pets and kids safe, a good turning circle and double glazing of the windows and all manner of sound proofing.
Once a fixerer upper was a major objection but these days that is perhaps not the case.
If there are transmission lines work out how to get them removed  .
Houses with spiral staircases are very difficult to sell so look at these with a view to putting in a better stair case.
Creativity is required but ask what does the market dislike about this house and can I fix it..then fixed what should it sell for...but better never to sell really.
Last...think of the future..what will this particular town and street be like in 20 years..often that future arrives in under 20 years.
And remember schools play a huge part in the mind of most buyers.
So what can you add to my ideas.
Buying commercial...look for properties that have a low rent and work out how you can develop it to command a higher rent..commercial property prices are mostly determined by the return..put up the rent you mostly in effect put up its value.
I hope others have tips or stories a smart purchase they have made and the factors that put them ahead.
Alex |
All good stuff Alex!
To state the obvious, not everyone wants a fixer upper and not everyone has knowledge on how to make a dump into a palace. Many people like me just want to move into a nice place and either do nothing or do just enough to ensure good resale value and avoid the run down look. I.e. you're primary motive is not to make money.
So, I'd add - don't be greedy, especially when buying a nice home to live in! Notwithstanding the need to understand market values in the area you're looking at (for the type of property you're after), if you see a place you absolutely
love (= strong emotional reaction, ticks most of the boxes and has no major points of objection), be assured that others will love it too. If the price is
reasonable don't low-ball!! In fact, to avoid disappointment, don't be afraid to make a
full price offer!
When doing renos, keep an eye on resale value and what buyers (= you) might want. Also, never invest more than 10-15% of what you paid for it.
There are usually things you want to fix to make a new home yours, so make sure you leave enough $$ in reserve to make those personal touches.
Marcus