10 Tips for Buying a House in Pre-Sale for Investment
Acquiring a property ceases to be a headache when you have good advice. So, here are some tips from experts in real estate.
Investing in real estate has its advantages: it is low risk, safe and incredibly profitable.
When acquiring a property, one expects its value to increase and then put it for rent or sale.
However, before buying it is essential to take into account the price, the goodwill, location and all the immediate expenses of the investment.
Here are 10 tips for buying a house in pre-sale for investment
- If your plan is to buy a house in a development to earn rental income, you must try to get the best price so that your profitability is as expected. To get a good price, it is recommended to buy a house in a pre-sale stage.
- Being the first to buy, it helps you capture the added value that the developer will give you, who will eventually raise the prices of the homes in the next stages of sale.
- In addition to getting a good price, it is important that you take into account the location, since a good location, like the homes for sale in Mornington, will allow you to have the possibility of putting a higher rental price.
- It is very important to have analysed the characteristics of the development in order to make an informed purchase and know all the attributes and differentiators that the new housing development offers in order to guarantee a faster income.
- When you are choosing a development, you should try to get a house that is priced at the average price of the area, as that increases your potential customers. If you do not know what the median is in the different areas, does some research on statistics for the real estate market in the area in question?
- When selecting the house model for investment, it is recommended that it be the smallest or the median within the development, but not the largest house model: the small house is the one that most appreciates in value, if it has neighbouring houses which are bigger.
- It is very important that you know all the immediate expenses of the investment, which include the closing costs, registration fees and valuations, as well as the monthly expenses in the future: the communal maintenance fees (if applicable), the insurance of the house, maintenance of the house itself, among others. You should also consider the costs of installations in a new house, such as air conditioners, water heaters, curtains, cistern, etc.
- It is important to try to know the profile of other buyers in the development since if the majority buys with the idea of renting, there will be competition.
- You should also consider the expected date of delivery because if you are given the house when there is still a lot of construction to be completed, this may affect the placement and you may have to lower the rental price a little for the first year.
- When you buy for investment with bank financing, it is recommended that at least 20% of the value be paid, so that the rental income covers the mortgage payment. This will help you establish the correct rental price.