Four investing tips that will help you get big returns on your real estate investing:
One: Get to know your local market. The first thing to study and understand is pricing. Know the average price of homes around your area. Next, check average prices of homes in surrounding areas. Look to see if price trends are appreciating to some areas or depreciating in other areas. Know what areas to stay away from by tracking their pricing trends.
Two: Understand positive catalysts in your area. It is easy for potential investors to spot up-and-coming areas that will have long-lasting desirable attributes to future buyers or renters. Look for a new school being built, new or improved roads, shopping centers, and easily accessible public transportation. These developments will be strong selling points to your future buyers.
Three: Research lower tax rates. Two adjacent areas often have different property tax rates. This could make a huge difference in your investment, especially for long-term investments, such as rentals. If a small location change won’t make a difference to conveniences offered to your future tenants, you might as well save money on property tax and jump neighborhoods.
Four: Check for good school rankings. It could be one simple Google search that could earn you a big return on your investment. Good school rankings are a huge selling point to buyers and renters. It is also something first time investor’s overlook, or don’t even know to look into before buying an investment property. Make yourself some easy money and check school rankings in potential areas.
Tapping into your local markets is one of the biggest tricks to remember when investing in real estate. Following these four tips will help you make big returns on all your future investments.