It’s an industry which is full of riches if it is played correctly but unfortunately, like anything of the financial ilk, this isn’t always the case.
Fortunately, according to Terra Group, there are plenty of ways you can spot a bad real estate investment and pull out at the right time. As the title of today’s guide may have already suggested, we are now going to mull over some of these signs to hopefully safeguard your next big investment when it comes to real estate.
The seller isn’t revealing as much information as you would like
Fortunately, this isn’t as much as a problem as it once was. However, it can still happen, and if you are finding that the vendor isn’t being completely transparent in the process then it should be a sign that things might not be all as they seem.
The power of the internet means that it’s very easy to find a lot of historic records, meaning that a lot of information is right at your fingertips. However, when it comes to finding out when the roof was last replaced, or anything else which might not be officially documented, things suddenly become a lot harder.
If you’re finding that the seller is withholding information about the “important” elements of your purchase (with a roof repair being a prime example) this might be a sign that you should be pledging your money elsewhere.
It’s all about location, location, location
Ok, so it’s not all about location, but it would be fair to say that it plays a big part in proceedings.
If you are unlucky enough to pick an investment in a bad area, there are all sorts of repercussions. It goes without saying that you are more likely to incur damage to your property, whether this is from your own tenants or from vandals.
Additionally, there can be other problems in relation to rents. While it’s not an “official rule” by any stretch of the imagination, properties in poorer areas typically attract poorer tenants. The upshot of this is that you can get problems in relation to the rent being paid and ultimately, this is going to impact your bottom line.
Has it been on the market for a long time?
There’s a couple of ways of looking at this next point. In some cases, a property being on the market for a long period of time can represent an excellent investment. After all, if nobody else has spotted it, this could be your opportunity to knock down the price and net yourself a fantastic deal. However, this is only likely to be true if the property hasn’t been marketed accordingly.
If it’s been released to all of the main places, you should be asking yourself big questions on why it’s not sold though. There could be an underlying problem that you’ve not yet seen, but which might cost you a lot of money down the line. There can be a whole host of reasons it’s not sold, but suffice