In continuation with factors who help you to know why to invest in real estate market to build your wealth faster, following were the factors in previous articles. If you have missed out, Click on the links below:
Today we will discuss about 3 more factors because of which you should always consider Real Estate as Primary Investment for fast wealth building. These are:
6. Create Value with Property Improvements
7. Improve the Neighbors and Neighborhood
8. Convert the Use
Create Value with Property Improvements
Most real estate investors and home owners fail to strategically improve their properties to maximize values. As a result, entrepreneurial investors—an investor like you who can spot opportunities for improvements—can dramatically and quickly boost the values of the properties you buy. Plus, when you choose to operate entrepreneurially, you also gain because your properties bring in higher rents.
Multiple Ways to Improve
When we talk about property improvement, most owners look only for profit making cosmetic changes: Lay some new carpet, paint the walls, clean up the yard, and put new tile floors in the kitchen and bathrooms. As a truly creative entrepreneurial investor, you will develop a total fix up and renovation plan that may involve kitchen and bath remodeling, reconfiguring a floor plan, adding skylights or ceiling height, and attic or basement conversions.
As an entrepreneurial investor, you will survey competing properties available in the market, look for what an unsatisfied tenant or buyer wants, and then strategically design a plan of improvement to create the wow factor in the said property. With wow factors in place, you will not only add to the value of your building, you will attract bigger corporate tenants and collect higher rents.
Don’t Overlook Site Enhancement
As part of your total property improvement plan, you have to focus on potential value improvements that you can create with the site. Maybe you can create a view to a newly beautified backyard, add parking spaces, eliminate a drainage problem, or even slice off part of the lot to construct another residence.
In posh and high-priced areas of the country, site value can easily account for more than 50 percent of a property’s total value. When you find better ways to use the property’s site, you immediately boost the property’s value. Walkways, fencing, landscaping, driveways, storage, and redevelopment may all offer promise for excellent profit on the same. As an entrepreneurial owner, you have to think through a maximum number of potential ways to enhance site value.
Improve the Neighbors and Neighborhood
“Buy in the best neighborhood you can afford. The best neighborhoods always appreciate the fastest.”. But, in fact, it’s the turnaround neighborhoods that can often shoot up in value the most of the properties.
Although some investors wait for these neighborhoods to show strong signs of renewal, whereas other smart investors jump in early while prices are still rock bottom cheap. They always find neighborhoods that show potential in coming future. Then they work with other property owners, neighborhood residents, local government to create better local facilities and amenities.
Either way, you can profit big. Even during those periods when average property prices and rent levels merely edge up i.e. level off or turn down, some neighborhoods remain prime candidates for rapid price escalation. Turnaround neighborhoods clearly give you the chance to realize every investor’s dream, “Buy low, sell high.”
Convert the Use
From time to time some real estate markets get over construction with apartments, office buildings, shopping centers or other types of property. When such over construction occurs, alert investors go for bargain hunting for properties. Although some bargain hunters hold for the long term, others go for the quick profits by converting properties from one use to another.
Dynamic Markets Precipitate Change
In our dynamic economy, the need for real estate continues to grow on rapid basis. When oversupply of property or tough times hit some types of property uses, that situation spells profit possibilities for those investors who can figure out a better way to use now obsolete or unprofitable buildings.
Neighborhood Changes
For the past two decades, many close-in neighborhoods with obsolete factories and warehouses have experienced a renaissance as real estate investors bought cheap, old industrial buildings and converted them to apartment buildings.
Likewise, as commercial areas sometimes encroach into residential neighborhoods, smart property investors have successfully sought zoning changes and then converted large houses into professional offices aimed at those ever expanding legions of lawyers, accountants, dentists, real estate brokers, and insurance agents.
Connect For More Details at : HEIMAT ADVISORY
Author: NIKITA DAGAR
