8 Hidden Secrets of Buying Apartments

Real estate is one of the few types of assets that do not depreciate easily. It’s an easy bet when it comes to investment. However, some real estate investments are more profitable than others. A clever differentiated understanding can result in you stumbling upon much more value in a lesser amount of time than you initially expected. Here are 8 (rarely disclosed) tips on buying apartments that no one talks of:

 

One

 

Have you seen used office furniture on Bikroy.com being sold at cheap rates? This usually happens when companies shift to bigger scopes or go out of business. While there’s nothing to rejoice about this, people can lose their homes too if they fail to pay mortgage payments for an extended period of time. The lender, as in the financial institution, is in most cases a bank, who will remove the occupants and sell it on the market. Since banks are in the business of lending money, not manage real estate, they offer discounts on those properties. You can get great deals on foreclosed properties, if you know how to buy foreclosures properly.

 

Two

 

As much as residential area apartments are lucrative and expensive, some locations around commercial areas can appreciate largely too. Spencer Rascoff, CEO of Zillow.com, has a hypothesis called the ‘Starbucks Effect.’ Rascoff, who collected statistics from his site’s database of 110 million homes to find trends in real-estate pricing, found that a home near a Starbucks would appreciate way more than one without a Starbucks. We might not have Starbucks here, but we do have North End, Gloria Jeans and Crimson Cup.

 

Three

 

If you’re buying or building yourself a new apartment, focus on the aesthetics; spend a little on the interiors. This will not just look way better than the other vanilla options, but also will fetch a better resale value as well.

 

Four

 

According to a study, an average American millionaire has 7 sources of income, and number three is rental income from real estate. Investing in an apartment generates a nice, steady return. Sometimes, it can be more lucrative than other options in the existing market.

 

Five

 

If you are in the market to invest, do look at a lot of options. Don’t just look at the apartments you would buy. Look at properties that can interest tenants, and generate good rents. Simply put, think with a broad-spectrum perspective on the use of that land.

 

Six

 

Any sort of investment needs through financial analysis. It’s ideal to have alternatives and determine which makes more financial sense than others. The current buyers in the market tends to be a little aged, and there are times, they make decisions based on intuition and past experience. But given the ever changing property market, buyers should run proper financial estimations and diagnostics before making a final call. Net income, cash flow, return on investment, cash-on-cash return, return on investment – these are some basic, yet important figures.

 

Seven

 

If you have a home with custom furniture that might not fit so well in your new home, you might consider offering the furniture with the sale. In addition to helping sell the home, it will make it easy to get rid of the furniture.

 

Eight

 

Apartments, or even real estate for that matter, are not always a great investment. There is a myth that it always is, and that property will always appreciate in value. But that’s not always the case. Yale economist and Nobel Laureate Robert Shiller reported that from 1890 to 1990, the return on residential real estate was just about ZERO after inflation in the United States. So, it’s advisable to understand the prospects of the economy before an investment.

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