Investing in real estate can certainly be profitable, but it can also be tricky. If you are looking to become a serious investor in real estate, it can take time to develop a real head for what it a good investment and what isn’t. If you are simply looking to make a good home investment, however, that can be quite bit simpler. Here are three things to consider when deciding if a property is a good investment or not.
Location, location, location
A good location takes a number of different factors into account other than just geography. Being located in a good school district or with easy access to highways or public transportation are all benefits of course, but where a house is situated on a plot of land and the neighborhood it is located in are also important. If the property does not have adequate drainage the home can be susceptible to flooding. An overly restrictive HOA can cause any number of headaches, while a lack of any type of HOA can allow the choices of neighbors to drive property values down.
Cosmetic versus structural
Too many home buyers can be deluded by a soaking tub and professional decorating into believing a home is worth more than it actually is. Conversely, many home buyers may allow a little outdated Formica and laminate to blind them to a diamond in the rough. What is most important when investing in a home is determining whether the structure is solid. A good roof is worth far more than a glamorous walk-in closet and a good, solid furnace and water heater will stand you in far better stead than all the latest smart home tech.
Check the roof
The roof and foundation are the two most important components of a home and a roof can tell you a lot about the foundation. Is the roofline sturdy, sagging, strong and straight? You can tell a lot about a house just by taking a few minutes to scope out the roofline from afar, but you can tell even more by simply climbing up on a ladder for a closer inspection. If a roof has not been well cared for, chances are good the house under has not been either. If a roofline is sagging, listing or tilting, there’s a good chance the real issue is with the foundation.