Any distress or resale property that you are planning to invest in and which you are getting for a steal is not going to be worth unless there are some problems that are some problems attached to it. Let us say that you have found a home or a commercial property that is 30 – 50 % below the market price. Chances are that this property will need some work and some investment done on it before it can be resold for a profit. As real estate consultants to investors and the wealthy, we believe that it is our first and foremost duty to help our customers find a deal that is just right for him / her.
Everything starts and ends with the selection of the property. A good property consultant can sniff opportunities where others see problems. And to have that edge of sniffing opportunities is impossible without years of experience. In the resale or even primary home market, there are properties that aren’t worth buying at any price however attractive the offer because of certain factors. And then there are properties that do not appear to have strong value but when seen through the trained eye, they can be seen for what they are – diamonds in the rough!
The location is the singular most important differentiating factor when seen through the prism of investing. A house near a noisy street, or railway track or overlooking a polluted highway will be seen as less than optimal. Experienced agents like us have been trained to recognize trends and pockets of homes that appear to be fine but are in neighbourhoods that are on the decline. A good real estate agent can help you buy the right property in the best possible location so that your property appreciates considerably.
Buying with the Sale in Mind
Here’s an all too common scenario! Someone buys a flat and then spends years trying to sell the flat! Having the right property consultant to consult you when you buy a home can save you from your worst nightmare – being saddled with a property that you cannot sell. It’s a sorry plight and one that I have seen happen again and again. Imagine having invested in a down payment, fixing up costs for interiors and exteriors and holding costs with no buyers in sight.
One of the most important services that a real estate agent can offer to you is to help you buy property with the sale in mind. You could get the best deal in the world or you could buy the best property in the world but your property does not sell then it does not matter what you did right! The fact of the matter is that you did the main thing wrong – You did not buy with the end or you did not buy with the sale in mind.
Here’s what you can do to ensure that you don’t get stuck with a property that you cannot sell:
- Before buying any property whether new or old, take your property consultant into confidence. He should be someone who knows the local market and the future potential of the area and the potential returns two years or five years down the line.
- Study the data that your real estate consultant provides to you.
- Know who the potential buyers of your property are even before you buy the property.
- Find out what the ideal buyers are looking for.
- Set up the property and financing to the profile of thee buyers.
- BUY WITH SELLING IN MIND!
A good idea before buying properties is to do some research on properties comparable to what your property is going to look like a year or two or even five years down the line when you decide to sell. Find out how much these properties are selling for how long it took for them to sell. Always keep in mind the condition of the real estate market and the timing of the year that can affect the sale.
“Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” ~ Robert Kiyosaki, Author of Rich Dad Poor Dad
If you are in any way serious about the business of real estate investing you must understand that it is absolutely imperative to have the property consultant on your side. He or she will make the difference between success and failure. Success in real estate investing is a mix of knowledge, experience, connections and compatibility. If you are a real estate investor and you regularly read our blog then you may have a clearer idea of what to expect from your real estate agent and what your agent can do for you. We at Gupta & Sen sincerely hope you are able to find and select the right properties to invest in and to ensure success in your real estate investment business!
Chloe is a real estate advisor and investment advisor with Gupta & Sen Associates. With a combined experience of over 15 years in varied industries, she is a vocal and knowledgeable ally for buyers and investors who want to make informed choices when buying a property in India. With superlative communication and marketing skills, Chloe handles our PR, real estate marketing strategy and client management.