Tips on When to Buy a Property
Every man must make an investment in property at some point in time in his life, to take care of the basic need of shelter or for business purposes. An investment in landholdings or real estate in general is always considered as a good asset.
Today, in the times of recession in the USA and the world over, the buy a property prices have fallen greatly. In fact, the so-called sub-prime losses which heralded the recession were triggered by the depreciation in real estate properties. Banks, big financial institutions, and big corporations are collapsing and are down on their knees. Unemployment is rampant everywhere. Some would say this is an ‘hour of woe’, I say this is the time of opportunity.
It’s a time of rare opportunity and enterprise. These times test the mettle of people and those who can survive it, thrive later. This is also a good time for a person who wants to invest in real estate.
Granted that the property prices have fallen drastically and there is no immediate hope of appreciation in prices, if the investment is made, but there is always hope that they will. Strategic investments made in particular sectors will cost lesser now. Get a good appraisal or valuation of the buy a property, according to market prices, before you go ahead.
As in any financial transaction, the golden age-old rule applies here too – ‘Buy cheap, sell dear‘. Recession is the time to buy cheap. There are certain properties, especially in cities which in boom time would be beyond your budget, but now are well within your reach.
The timing of purchase and the choice of buying a property depend on your purpose behind the acquisition of the same. First, ask these questions to yourself. Why am I buying the property? What are my expected returns from the investment?
If you are buying it for the purpose of residence, as you need a bigger space for your now-expanded family and you do not intend to sell soon, now is a good time to buy. Here, you have a wide range of choices, between selecting homes in cities, to their outskirts, or even the countryside.
Housing prices in cities have dropped marginally to drastically in some cases. In the future, you may expect appreciation, but the bottom line is, in times of recession, you have a wider choice than before. The time of buying is true of essence, as currently, the buy a property prices are very volatile. It will take some time for the prices to settle down. Let the dust settle down a bit. Identify the trends of prices in the areas that you are looking for. Scout according to your budget and taste, for a good home.
If you need to make an investment for an office space or business, then there are three most important things you must look for; location, location and location. You obviously have to scout for estates in the commercial and business areas. This is a tricky time for commercial real estate investment, especially if it’s a large acquisition. If you are a big corporation, your risks are lower, as then you have financial backing. Big corporations can acquire really good commercial estates at quite a low price in times of recession.
However, if you are a small investor, you need to be very careful. It’s difficult for me to advise for sure as there are many variables that need to be taken into consideration. For example, the nature of your business, the growth possibility it has, and so on. What I can say is, in this time of opportunity, get as much information about the pros and cons of your business venture as you can.
Market research is a thing that needs to be done thoroughly. If you think the conditions are favorable and the time for your idea has come, then make a real estate investment according to your needs. Take the risk. After all, those who take risks, get somewhere in life and the biggest risk is taking no risks.
So to conclude, I would say that evaluate your needs first and then the risks, review your budget, thoroughly research prices and then go for scouting a property. Think long term, in any transaction you make.
