Looking for the perfect property comes with its challenges. Competition on the market could be fierce pushing you to make a decision quickly or you may have had to alter your expectations in line with market conditions.
How much you spend on the purchase will entirely depend on your personal situation however whether this is at the bottom or higher end of the scale, it is important to know that you are making a sound investment. The property has become a credible asset class so for many buying and selling properties is a means to make money.
Your intentions might be to hold onto the property for a short period and then sell with the aim of making a substantial profit. Should this be the case then speculating on new developments could an option. Buying in the first phase where prices will be at the lowest will come with its rewards. Speculators need to have their ears to the ground to be the first people walk through the marketing suite’s door when units are released.
For some, especially investors who are new to property, this strategy may be considered too high risk. It is imperative to carry out due diligence on the property and on the developer. Take time to research the area and understand every aspect of the building. As momentum for the development gathers pace, there will be increased interest and prices will rise accordingly. Some speculators ‘flip’ selling before the building is even complete.
Another way to make money on a property is to improve it. This could be as simple as upgrading the kitchen or bathroom, painting in a modern colour, adding some more modern touches or be as complex as reconfiguring the apartment to make the best use of the space. Upgrading a property is not for the faint-hearted, but it will be worth it since so many people are reluctant to go down this route and would rather move into a property that is already done.
For longer-term returns, look for areas of improvement. See where the government and other businesses have earmarked for development and piggyback on its success. This could be the extension of the mass transit network which naturally will draw more people to a location or even a whole new area that is been designated for regeneration. It could take time for these improvements to pan out, so investors need to be prepared to sit tight for the long haul before gentrification takes shape and property values heads upwards.
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